An estimated cost per unit in long run which enables the company to achieve its per unit desired profit is known as: a. Target operating income per unit b. Target cost per unit c. Total operating cost per unit d. Total cost per unit

An estimated cost per unit in long run which enables the company to achieve its per unit desired profit is known as: a. Target operating income per unit b. Target cost per unit c. Total operating cost per unit d. Total cost per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

21-An estimated cost per unit in long run which enables the company to achieve its per unit desired profit is known as:

Target operating income per unit

Target cost per unit

Total operating cost per unit

Total cost per unit

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20. Select which of the following requires a separate measurement of cost. a.Number b.Activity c.Area d.Volume 21. Select the objective of cost accounting which helps the management in doing the business efficiently. a.Guide to business policy b.Cost control and reduction c.Determination of selling price d.Ascertainment of time
Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-ever represents:
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25. A standard cost Multiple Choice a)is the average cost within an industry b)is useful in calculating equivalent units c)is a budget for the production of one unit of a product d)incorporates the opportunity cost of a unit of production e)shows the actual cost from previous years
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Change in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?
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Question 3: Net profit (or loss) expresses the difference between the price that materials or goods (food) were sold for with all associated costs subtracted. This includes the materials costs (e.g. food), labour costs and all other overhead costs (e.g. packaging, power costs, rent, etc.). Express the Total Costs in money($), net profit (NP) in money ($) and as a percentage (%) in the table below. Show the working below the table. Sales $140.55 $175.98 $.268.90 $555.65 $1010.80 Food Costs $40,99 $55.45 $81.38 $120.00 $300.70 Labour Costs $50.50 $61.25 $90.45 $155.98 $240.54 Overheads $23.34 $34.00 $74.88 $111.54 $230.78 Total Costs Net Profit (S) Net Profit as %
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit
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