Which the the following is not an assumption of cost-volume-profit analysis?A. The moment value that money is incorporated in the analysis.B. Prices can it is in classified right into variable and also fixed components.C. The habits of revenues and expenses is accurately shown as straight over the appropriate range.D. The number of output devices is the only driver.
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Contribution margin is calculation asA. Full revenue - total fixed costs.B. Complete revenue - total manufacturing costs (CGS).C. Total revenue - complete variable costs.D. Operating earnings + full variable costs.
One means for managers to deal with with apprehension in profit planning is toA. Usage CVP evaluation because it assumes certainty.B. Recommend administration hire a futurist whose work is come predict business trends.C. Wait to view what walk happen and prepare a report based on actual amounts.D. Use sensitivity evaluation to discover various what-if scenarios in order come analyze alters in revenues or expenses or quantities.
D. Usage sensitivity evaluation to explore various what-if scenarios in order come analyze changes in profits or expenses or quantities.
Managers usage cost-volume-profit (CVP) analysis to ________.A) projection the price of resources for a given period of time B) to examine the habits of and relationship among the facets such as total revenues, complete costs, and also incomeC) estimate the risks connected with a offered jobD) analyse a firm\"s profitability and assist to decide riches distribution among its stakeholders
B) to examine the behavior of and also relationship amongst the facets such as total revenues, complete costs, and income
One that the first steps come take when using CVP analysis to aid make decision is ________.A) calculating the break-even pointB) identify the variable and fixed costsC) calculation of the level of operating leverage for the companyD) estimating the volume the sales to do a an excellent profit
Which that the complying with is true that cost-volume-profit analysis? A) The theory assumes the all prices are variable.B) The concept assumes the units made equal systems sold.C) The theory claims that full variable costs remain the very same over a pertinent range. D) The theory claims that complete costs continue to be the same over the relevant range.
The selling price per unit much less the variable expense per unit is the ________. A) fixed price per unit B) gross margin C) margin of safety D) contribution margin every unit
In the graph an approach of CVP analysis, ________.A) The total revenue heat starts at the origin and the total costs heat starts in ~ the addressed intercept.B) The operating income line starts at the origin and the total costs heat starts at the solved intercept.C) The breakeven point is in ~ the addressed intercept wherein the full revenues line intersects.D) The operating income area is the section where the full costs line is above the full revenues line.
A) The full revenue line starts at the origin and the total costs heat starts in ~ the resolved intercept.
Which that the complying with is an assumption of CVP analysis? A) complete costs deserve to be split into a fixed component and a component that is variable through respect to the level that output. B) when graphed, total costs curve upward. C) The unit-selling price is variable as it is subject to demand and supply. D) total costs can be separated into inventoriable and period costs v respect come the level that output.
A) full costs deserve to be split into a solved component and a component the is variable with respect come the level of output.
Which the the adhering to is true that CVP analysis? A) costs may it is in separated right into separate inventoriable and duration components through respect come the level of output. B) total revenues and also total expenses are linear in relation to output units. C) Unit selling price, unit change costs, and also unit fixed prices are known and remain constant. D) proportion of different assets will vary according come demand and supply when multiple commodities are sold.
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A revenue driver is characterized as ________.A) any type of factor that affects costs and revenues B) any factor that affects revenues C) the only factor that have the right to influence a change in selling price D) the only element that can influence a change in demand
The donation margin every unit equals .A) fixed price - donation margin ratioB) marketing price - fixed costs per unitC) selling price - variable costs per unitD) offering price - prices of items sold
Which that the adhering to is true around the assumptions underlying straightforward CVP analysis? A) offering price varies with demand and supply that the product. B) only selling price and variable cost per unit room known and also constant. C) only selling price, variable cost per unit, and also total fixed expenses are known and also constant. D) selling price, variable expense per unit, fixed expense per unit, and also total fixed costs are known and constant.
The donation margin earnings statement ________.A) reports gross margin B) is permitted for outside reporting to shareholders C) categorizes expenses as either straight or indirect D) deserve to be supplied to predict operating income at different levels of activity
MyAccountingLab with Pearson eText -- Instant accessibility -- because that Financial Accounting9th EditionCharles T. Horngren
Financial accountancy plus MyAccountingLab through Pearson eText, an international Edition9th EditionCharles T. Horngren, Walter T Harrison
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