CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS TRUE/FALSE 1. To perform cost-volume-profit analysis‚ a company must be able to separate costs into fixed and variable components. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost-volume-profit (CVP) analysis 2. Cost-volume-profit analysis may be used for multi-product analysis when the proportion of different products remains constant. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost-volume-profit
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Part 2 What are the variable costs? Meals the high and low $4‚900 - $3‚500 =1‚400 Cost the high and low $26‚000.00 - $20‚500.00 = $5‚500.00 The variable cost per meal is $5‚500 divided by $1‚400 which is $3.93. The variable cost for the low month is $5‚500 multiplied by $3.93which is $13‚755.00. What are the fixed costs? The total fixed cost is subtracting the variable from low time period: $20‚500 - $13‚755.00 = $6‚745 How many
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greater regulatory control by provincial and regency governments. Despite these changes in ownership and regulatory control‚ Indonesia‘s coal industry expanded during the Localization period at a still impressive‚ albeit slower‚ growth rate of 12 percent per year. In 2005‚ against all odds‚ Indonesia became the world‘s largest exporter of steam coal with total coal exports of 117 mt of steam coal against ―runner-up‖ Australia‘s 115 mt. In 2009‚ Indonesia‘s exports of steam coal had increased to 176.39 mt
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Cost Accounting: A Managerial Emphasis‚ EXHIBIT 11-1 Accounting Information and the Decision Process FIVE-STEP SEQUENCE Step 1: Gathering Information AN ILLUSTRATION The current manufacturing line uses 20 employees‚ 15 operating machines‚ and 5 handling materials‚ for a total cost of $640‚000. The rearrangement of the manufacturing assembly line is expected to eliminate materials-handling costs‚ equivalent to $160‚000. The cost of the rearrangement will be $90‚000. Historical
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Cost reduction Generally defined as the act of cutting costs to improve profitability. Cost reduction‚ should therefore‚ not be confused with cost saving and cost control. Cost saving could be a temporary affair and may be at the cost of quality. Cost reduction implies the retention of essential characteristics and quality of the product and thus it must be confined to permanent and genuine savings in the costs of manufacture‚ administration‚ distribution and selling‚ brought about by elimination
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Costs and budgets The management of costs is a very important aspect of managing financial resources. If costs are not managed effectively‚ it can lead to profits being damaged and the business potentially unable today its expense. Keeping within a budget‚ increasing income in order to cope with change and making sure that working capital is available and money and set aside for emergencies is all part of the balancing exercise. Costs managed to budget McDonald’s budget was adverse as there
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boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples‚ and carrying costs are $0.80 per box on an annual basis. Determine: (A) the order quantity that will minimize the sum of ordering and holding boxes of staples (B) the annual cost of ordering and carrying the boxes of staples 2. . A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. Determine:
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Cost Behavior Cost behavior is term for describing whether a cost changes when the level of output changes. The cost can vary proportionately with the changes in the level of activity or unaffected by changes in the level of activity. Costs can be variable‚ fixed‚ or mixed. A cost that does not change in total as output changes is a fixed cost. A variable cost‚ on the other hand‚ increases in total with an increase in output and decreases in total with a decrease in output. Understanding how costs
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Institute of business management | DIFFERENCES IN PERCEPTION OF CUSTOMERS BELONGING TO DIFFERENT LOCALITIES REGARDING CONSUMPTION OF NUTRITIONAL SUPPLEMENTS‚ SPECIFIALLY PEDIASURE. | Methods in Business Research | | Muhammad Bilal Arif SaharAnum IqbalAhetezaz HaloFaiz Mehmood | 12/10/2012 | | Contents Acknowledgment 3 Abstract 4 Introduction 5 Statement of Problem 6 Significance of Problem/ Purpose 6 Statement of Hypothesis 6 Limitations 6 Literature Review 7
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------------------------------------------------- ASSIGNMENT ON COST CONTROL AND COST REDUCTION ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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