You are watching: To which function of management is cvp analysis most applicable?
Which the the following terms execute not show up on the contribution margin style income statement?contribution margin.variable expenses.operating income.gross profit.
The scattergram enables cost-volume relationship to it is in visually scanned for outlier observations that must be:included in the calculation of the variable rate component that the blended cost.included in the calculation of the cost formula of a mixed cost.included in the calculation of the fixed expense component the the mixed cost.ignored in the calculation of the cost formula of a combined cost.
Which that the complying with is the exactly calculation for the donation margin ratio?contribution margin separated by sales revenue.sales revenue separated by change costs.contribution margin divided by change costs.sales revenue separated by contribution margin.
ABU Co. Has several products, each with a various contribution margin ratio. If the same number of units were offered in July together in June, however the sales mix changed:fixed costs in July would certainly be in a different relevant variety than in June.the company"s overall contribution margin proportion would it is in the very same in June and July.operating earnings would it is in the very same in June and also July.total donation margin in July would be different from the in June.
The principle of operating leverage refers to which the the following?Operating income alters proportionately less than earnings for any type of given readjust in activity level.Operating income transforms proportionately much less than earnings for any kind of given change in task level.Operating income changes proportionately more than revenue for any given adjust in task level.Operating income alters proportionately more than revenues for any given readjust in activity level.
Which the the following statements does not describe a properties of monitoring accounting?Management accountancy places a good deal of emphasis on the future.Approximate quantities rather 보다 accurate amounts or refined approximates are regularly used in management accounting.Management accounting must conform to GAAP.Management bookkeeping is more concerned v units of the organization rather than through the company as a whole.
As the total volume of task changes:variable prices per unit change.the complete of fixed costs changes.the total of variable expenses changes.fixed costs per unit stay the same.
The decision because that solving manufacturing mix troubles involving multiple products and scarce production resources should focus on:gross profit of each product.sales price of every product.contribution margin of every product.contribution margin every unit the scarce resource.
A(n) _____________ is the minimum cost that deserve to be incurred, which once subtracted indigenous the offering price, enables for a preferred profit to it is in earned.relevant costopportunity costtarget costincremental cost
Managerial accounting, together opposed come financial accounting, is primarily concerned with:A. Present and also future planning and also control.B. Providing information to investors and also creditors.C. Historic results that operations.D. Prepare the existing balance paper of the company.
The relevant variety concept ad to:A. A firm"s range of profitability.B. A firm"s range of sales.C. A firm"s selection of rates of return.D. A firm"s variety of activity.E. A firm"s selection of expenses.
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Cost habits refers to:costs that space both an excellent and bad.costs that increase at a quicker rate than others.costs that decrease in ~ a much faster rate 보다 others.costs that room variable or fixed.none of the above.
Which the the following expenses classifications would certainly not be thought about relevant in to compare decision alternatives?A. Chance costB. Differential costC. Sunk costD. Incremental costE. None of the above
In considering even if it is to accept a unique order in ~ a price much less than the normal marketing price of the product, however the additional sales will manipulate presently idle capacity, i beg your pardon of the following expenses will no be relevant?A. Fixed manufacturing overhead that deserve to be avoidedB. Straight materialsC. Change overheadD. Depreciation of the production plantE. Straight labor
If one asset expenses $32,000, has actually an expected valuable life the 10 years, is meant to have actually a $4,000 rescue value, and also generates net yearly cash inflows of $8,000 a year, the cash payback period is
The type of costs contained in a management evaluation relating come a funding budgeting decision must be limited to: