cashflow88.com/decisiones/decisiones.html ivelez@unitecnologica.edu.co nachovelez@gmail.com Cartagena 7/16/2010 Financial and Ratio Analysis. Vélez 1 Operating Leverage Financial and Ratio Analysis. Vélez 7/16/2010 2 Variable Costing Q * USP – Q * (UVC +UVE) – FC – FE = EBIT • Operating leverage is the degree to which a firm uses fixed costs in its operations. The higher the relative fixed costs (% of total costs)‚ the higher the firm’s degree of operating leverage
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NEW YORK UNIVERSITY Leonard N. Stern School of Business Final Exam Version C C10.0002 Principles of Managerial Accounting Spring 2004 Answer all questions of this examination in the exam booklet provided. Points Distribution: Part A Multiple Choice 54 points Part B Question 1 20 Question 2 20 Question 3 6 46 Total
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product costs‚ regardless weather they are variable or fixed. The cost of a unit of product under absorption costing method consists of direct materials‚direct laborand both variable and fixed overhead. Variable costing is a costing system under which those costs of production that vary with output are treated as product costs. This would usually include direct materials‚direct laborand variable portion of manufacturing overhead. 6-2 Variable costing treats variable and fixed selling and administrative
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bounce was 30 inches and the standard deviation was ¾ inches. What is the chance of getting a “fast” standard ball? T otal no. of observations N = 100 Mean‚μ = 30inches Standard deviation‚ σ=3/4 inches=0.75 inches Suppose ’x’ is the normal variable=32 inches 4. Explain
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Week 2: Assignment from the Textbook Ex. 20.1 Listed below are nine technical accounting terms introduced in this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each statement‚ indicate the accounting
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B) identifying which costs are variable and which costs are fixed. C) calculation of the degree of operating leverage for the company. D) estimating how many products will have to be sold to make a decent profit. Answer: B Diff: 1 Terms: cost-volume-profit (CVP) analysis Objective: 1 AACSB: Reflective thinking 3) Cost-volume-profit analysis assumes all of the following EXCEPT: A) all costs are variable or fixed B) units manufactured equal units sold C) total variable costs remain the same over the
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470) $120‚555 $12‚455 F Variable 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
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and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and b is the variable cost per unit of activity. Several methods can be used to estimate the fixed and variable cost components of a mixed cost using past records of cost and activity. If the relation between
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a cost formula that can be used to predict cost of an activity for a month‚ a quarter and a year. In preparing cost formula using least squares method‚ intercept represents fixed cost and slope represents the variable cost rate. Important Formula: Cost formula = Fixed cost + Variable rate * Level of activity Part 1 Step 1 Prepare a cost formula using the least squares method. x = $3‚212 + $15.15 * Number of orders received Part 2 Step 1 Use the cost formula to predict receiving orders
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TEST BANK > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add‚ modify‚ and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options‚ such as feedback and images‚ are available for question creation. Add Creation Settings Name Chapter 1--Fundamental Concepts Description Instructions Modify Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following
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