Chapter 6 Cost-Volume-Profit Relationships Solutions to Questions 6-1 The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. It can be used in a variety of ways. For example‚ the change in total contribution margin from a given change in total sales revenue can be estimated by multiplying the change in total sales revenue by the CM ratio. If fixed costs do not change‚ then a dollar increase in contribution margin will result in a dollar
Premium Variable cost Contribution margin Total cost
Questions 1. Which of the following statements about managerial accountants is false? A. Managerial accountants more and more are considered "business partners." B. Managerial accountants often are part of cross-functional teams. C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. D. In a number of companies‚ managerial accountants make significant business decisions and resolve
Premium Management accounting
A) Straight-line Depreciation Computation End of Year Year DC X DR = ADE AD BV 2012 220‚000 25% 55‚000 55‚000 195‚000 2013 220‚000 25% 55‚000 110‚000 140‚000 2014 220‚000 25% 55‚000 165‚000 85‚000 2015 220‚000 25% 55‚000 220‚000 30‚000 ($250‚000 – $30‚000) 1/4 = 25% Please note abbreviations are the same as bellow Double- Declining-Balance Depreciation Computation End of Year Book Value Annual
Premium Depreciation
Grade 45/50 Managerial Accounting 505 Case Study Week 3 A. What is the break-even point in passengers and revenues per month? Total Per Unit Percent Sales: 160 X 90 $14‚400 $ 160 100% Less variable costs/expenses: .70 X 90 $ 6‚300 $70 44% Contribution margin: $ 8‚100 $90 56% Less fixed costs/expense: $3‚150‚000 Net operating income: $3‚141‚900 8‚100 /14‚400 = 56% 100 - 56 = 44% BEP in passengers
Premium Variable cost Costs Management accounting
|Managerial Economics | | | |UNIT -I | | | |[Pick the date]
Premium Economics Supply and demand
MBA 6320 – Strategic Management Midterm Examination 1) It is widely recognized that changes in technology and competition have diminished many of the traditional roles of location. Resources‚ capital‚ technology‚ and other inputs can be efficiently sourced in global markets. Firms can access immobile inputs via corporate networks. It is no longer necessary to locate near large markets to serve them. Governments are widely seen as losing their influence over competition to global forces. It is
Premium Strategic management
Suggested Solutions to Sample Midterm #1 Fi 4000—Fall 2014 Problem 1 (20 points) Part A Suppose Mike wants to prepare an amount of money today to support his son’s college education. He expects his son to enter a college in 16 years with annual tuition and expenses of $25‚000 for 4 years. His first college tuition and expenses will due in exactly 16 years from now. Mike decides to put all the money that is required for his son’s college education today at a bank account earning rate of
Premium Investment Risk aversion
APUSH MIDTERM PRACTICE TEST MR. MANGAN GABE BLUM 1) Some big businessmen such as Andrew Carnegie vertically integrated their corporations by a) eliminating middlemen to control every aspect of production b) buying out all competing firms to monopolize a single product c) inflating the price of their own stock d) issuing uncompetitive rebates e) paying workers less so that they earn extra money for themselves 2) Why was there a larger problem with the new immigrants than
Premium
refinanced. T 7. Accounting for sales tax collected. F 8. Accounting for sick pay. T 9. Social security taxes as liabilities. F 10. Definition of accumulation rights. T 11. Recognizing compensated absences expense. F 12. Accruing estimated loss contingency. T 13. Disclosing gain contingencies. F 14. Sales-type warranty profit. T 15. Fair value of asset retirement obligation. T 16. Reporting a litigation liability. F 17. Expense warranty approach. F 18. Acid-test ratio components
Premium Balance sheet Generally Accepted Accounting Principles Liability
ACC 622 Advanced Auditing Midterm Case 4.1 1. A close friendship between an auditor and the client can jeopardize the auditor’s appearance of independence. And I think when such close relationship begins influence the auditor’s thoughts when he or she makes very important decisions‚ the independence of an auditor has been compromised. The Rule 101 – Independence says: “A member in public practice shall be independent in the performance of professional services as required by standards promulgated
Premium Audit Internal control Auditing