| | | Question 2 2 out of 2 points | | | In general‚ an increase in price increases the break even point if all costs are held constant. Answer | | | | | Selected Answer: | False | Correct Answer: | False | | | | | Question 3 0 out of 2 points | | | Fixed cost is the difference between total cost and total variable cost. Answer | | | | | Selected Answer: | False | Correct Answer: | True | | | | | Question 4 2 out of 2
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Requirement 1 (a) Johnson’s believes that the transfer from the Cushion Division to the Furniture Division should be at market price rather than at cost however this depends on the capacity of the Cushion Division. Johnson’s believes that the transfer from the Cushion Division to the Furniture Division should be at market price rather than at cost however‚ if there is no idle or spare capacity in Cushion Division the market price minus the corresponding variable selling expense would be the minimum
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keep the price at 20 French francs‚ which is the current price‚ the sales would only be able to touch 75‚000 units. The effort in the paper will be to analyze the impact of the following factors on the pricing strategy for Item345: a) Lowering of costs for Item 345 b) Impact on profit if price is lowered for Item 345 c) Effect of the pricing strategy on competition and market share d) Calculation of contribution margins for the pricing options QUESTIONS 1. Should Lille Tissages lower
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Q-1 Selected financial information about Vijay merchant company is given below: Particulars | 2010 (Rs.) | 2009 (Rs.) | Sales | 69‚000 | 43‚000 | Cost of Goods Sold | 57‚000 | 32‚500 | Debtors | 7‚200 | 3‚000 | Inventories | 11‚400 | 5‚500 | Cash | 1‚500 | 800 | Other Current Assets | 4‚000 | 2‚700 | Current Liabilities | 16‚000 | 11‚000 | Compute the current ratio‚ quick ratio‚ and average debt collection period and inventory turnover for 2009 and 2010- State whether there is
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expenses (50% of revenues) 54‚020 60‚277 6‚227 U Fixed expenses 53‚870 55‚000 1‚180 U Total expenses 107‚870 115‚277 7‚457 U Profit $230 $5‚278 $5‚048 F The actual profit meets the budgeted target of $230‚ therefore the manager of Jane-HW7 location is entitled to at least $1‚000 bonus. The total bonus amount = $1‚000 + ($5‚278 - $230) /10 x $1 = $1‚504.80 Budgeted Actual Cars washed 18‚400 12‚690 Price per car wash $10 $9.50 Variable cost $5 $4.75 Contribution margin $5 $4.75 Static budget
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Choice 1 | Conversion cost consists of which of the following?a. Manufacturing overhead cost.b. Direct materials and direct labor cost.c. Direct labor cost.d. Direct labor and manufacturing overhead cost. | 2. | Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?a. Product costb. Manufacturing overheadc. Period costd. Administrative cost | 3. | The salary of the president of a manufacturing
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Table of Contents Page Case Summary 3 Problem Statement 3 Introduction 5 Question 1 7 Question 2 9 Question 3 13 Break-Even analysis 15 Variance analysis 18 Question 4 20 Case Summary Berkshire is one of the eight companies in threaded fasteners industry in New England. The company produces 3 types
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glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center‚ management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs‚ revenues‚ and assets. A profit center is not responsible for assets. 9.4 Input/output relationships are not well defined in discretionary cost centers. Evaluation of such centers from
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points] Describe the cost behavior in the wireless industry. What are the implications of this cost behavior for cost-volume-profit (CVP) relationships? Cost behavior is how a company’s costs change given a change in that company’s activities. Variable costs are costs that change proportionately with the changes in a company’s activities. In contrast‚ the costs that do not change with a change in a company’s activities are known as fixed costs. In the case of AT&T‚ costs are focused primarily
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of accumulated costs to acost object is: A) cost accumulation C) cost assignment B) cost tracing D) conversion costing 5) Within the relevant range‚ ifthere is achange inthe level of the cost driver‚ then: A) total fixed costs will change and total variable costs will remain the same B) total fixed costs will remain the same and total variable costs will change C) total fixed costs and total variable costs will remain thesame D) total fixed costs and total variable costs willchange Answer
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