* What is the role provided by break-even point and how would you calculate this point? * Please calculate break-even point in patient days under the provided contract. * What are the limitations of using break-even point and how would you incorporate this point with management strategic planning? Break- even analysis is a generally neglected credit risk assessment to ol. It is very useful in leaping proposal the business risk profile. Break-even is the point at which a business makes neither
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I. TRUE / FALSE 1. A budget generally includes both financial and nonfinancial aspects of the plan. 2. The revenues budget should be based on the production budget. 3. A favorable variance should be ignored by management. 4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job. 5. For fixed overhead costs‚ the flexible-budget amount is always the same as the static-budget amount. II. MULTIPLE CHOICE 6.
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following statements is correct? | | Unfavorable cost variances always indicate bad performance. | | Favorable cost variances always indicate good performance. | | Both of the above statements are correct. | | Neither of the above statements are correct. | Managers should not assume that unfavorable cost variances always indicate bad performance and that favorable cost variances always indicate good performance. Unfavorable cost variances may result from an increase in revenues (e
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D) labor costs. E) None of the above answers is correct. 6. The two major contributing factors to a sales volume variance are deviations in: A) market size and market share. B) market size and sales quantity. C) sales mix and selling price. D) sales mix and sales quantity. E) sales price and sales quantity. 7. An unfavorable sales mix variance arises for a product when: A) the actual unit sold is greater than the budgeted unit to be sold. B) the actual unit sold
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Subject: Financial Statement Analysis – Task 2 Summary Report A budget‚ as defined by Hilton (2009 pg 348)‚ is a detailed plan‚ expressed in quantitative terms that specifies how resources will be acquired and used during a specific period of time. A budget is a financial document utilized to project future income and expenses. A budget is based on how much you make in income and what your monthly expenses are. Budgets evaluate performances while the plan is what is going
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CHAPTER 25 STANDARD COSTS AND BALANCED SCORECARD SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 9. 3 C 17. 3 C 25. 4 C sg33. 3 K 2. 1 K 10. 3 K 18. 4 K 26. 5 K sg34. 4 K 3. 1 C 11. 3 C 19. 4 C 27. 6 C sg35. 4 C 4. 1 K 12. 3 K 20. 4 K 28. 9 C sg36. 5 K 5. 2 C 13. 3 K 21. 4 K 29. 9 C sg37. 6 K 6. 3 C 14. 3 C 22. 4 K 30. 9 C sg38. 7 K 7. 3 K 15. 3 K 23. 4 C sg31. 1 K 8. 3 C 16. 3 K 24. 4 C
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successful year (year 7)‚ Competition spent $32‚760 on advertising. This dropped to $27‚428 the next year. If we only increase the budget by $984‚ you can only expect minimal increases of sales as a result. A2. Evaluation Of Flexible Budget and Variances A flexible budget is a budget that adjusts different variable costs based on the volume of activity. This budget is better than a static budget‚ because you can adjust it due to the actual needs of the company. For example‚ if we experience
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References: Management by exception - Wikipedia‚ the free encyclopedia. (n.d.). Retrieved April 24‚ 2014‚ from http://en.wikipedia.org/wiki/Management_by_exception What is a flexible budget variance? - Questions & Answers - AccountingTools. (n.d.). Retrieved from http://www.accountingtools.com/questions-and-answers/what-is-a-flexible-budget-variance.html
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CHAPTER 10 Standard Costing and Performance Measures for Today’s Manufacturing Environment ANSWERS TO REVIEW QUESTIONS 10-1 Management by exception is a managerial technique in which only significant deviations from expected performance are investigated. 10-2 Any control system has three basic parts: a predetermined or standard performance level‚ a measure of actual performance‚ and a comparison between standard and actual performance. The system works by making the comparison between
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Issues: 1. The current variance analysis used for the 1973 fiscal years shows an overall favorable net variance of $71‚700. This is an aggregate net figure based upon the favorable variance due to sales and the unfavorable variance due to operations. This net variance figure fails to highlight areas of deficiency to help identify corrective actions. Furthermore‚ this variance does not indicate the real cause of the favorable overall variance. The success and purpose of variance analysis is reliant on
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