Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation?

Q: Company X has two products: Product A and product B. Product A has a higher selling price but a…

A: Solution Concept If a product line has high selling price but a lower contribution margin it implies…

Q: Controllability has little to do with whether a cost is fixed or variable.  Select one: True False

A: Fixed cost is the cost that is related to the production of a good or services. It is the amount…

Q: When absorption costing is used a. management may be tempted to overproduce in a given period in…

A: Absorption costing is a method of calculating the cost of a product or enterprise by taking into…

Q: Which of the following is not a consideration when a manager is deciding to discontinue a product or…

A: The management can take decision to discontinue the product or product line in case, its leading to…

Q: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: incremental analysis, Group of answer choices costs are not relevant if they change between…

A: In carrying out the incremental analysis only relevant costs are to be considered in the decision…

Q: segment contribution margin would reflect the impact of: Multiple Choice O variable operating…

A: Segment contribution  is calculated by the segment revenue - segment expenses. in this only…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: 21. If variable selling and administrative costs increased, how would the gross margin and…

A: Variable selling and administrative costs are those selling and admin costs which will be changed…

Q: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: CVP analysis

A: Option "b" is wrong because the statement is true. The purpose of CVP analysis is to study the…

Q: Complete the following statements with one of the terms listed here: You may use a term more than…

A: The objective of the question is to fill in the blanks with the appropriate cost terms from the list…

Q: Which of the following statements about a sunk cost is false? Question 11Answer a. It is relevant to…

A: In cost accounting, several type of cost classifications are there. These are like direct costs,…

Q: Does having a positive Contribution Margin always indicate that it is better to continue operations…

A: Contribution Margin is calculated by deduction variable costs from the sales revenue.

Q: 3. Which of the following is correct regarding a relevant range? a Total variable costs will not…

A: A Relevant Range is the Range of Activity above which the Variable Cost Per Unit and The Total Fixed…

Q: When deciding whether we should add or drop a product or segment, we should think about Multiple…

A: When deciding whether we should add or drop a product or segment, we should think about : the…

Q: Which of the following is not a factor to consider when deciding whether to accept a special order?…

A: It is the process of making decisions that involve the management of costs in order to achieve…

Q: Which of the following statements regarding assumptions and limitations of CVP analysis is not…

A: The objective of the question is to identify the incorrect statement about the assumptions and…

Q: relevant cost analysis is: A. variable costs are always relevant. B. fixed costs are always…

A: When doing cost analysis for the company productions ,company is going to invest a lot of money so…

Q: Describe the behavior of fixed and variable costs as activity levels change. Use graphs to…

A: Answer:-  Fixed cost meaning:- Fixed costs are expenses that remain constant regardless of whether…

Q: Which of the following statements about the use of relevant cost analysis in decision making is…

A: The Cost  play an important role in decision making because it is concern with all the decisions…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Riles Truckers, Inc. acquired a heavy road transporter on January 1, 2014 at a cost of P10 million.…

A: Depreciation is calculated on the cost of asset and in case there is replacment of any significant…

Q: 1. Which of the following is a disadvantage of the Variable Costing method? A. The data available…

A: A cost accounting technique known as "variable costing" treats fixed manufacturing costs as period…

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that…

A: Cost allocation refers to the process of distributing the single cost among various companies,…

Q: C8Q7- Which one of the following statements is not correct? Total cost = total variable cost + total…

A: It is required to select a statement which is not correct. The statements are : 1. Total Cost= Total…

Q: Each incorrect answer cancels out each correcr one. Indicate which of the following statements are…

A: 1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Q: Which TWO of the following statements about life-cycle costing are true? Specific product models…

A: Life cycle costing is a technique of cost accumulation of a product over its life cycle. Now these…

Q: Which of the following is true for a make or buy decision? * O The reliability of the outside…

A: solution Make or buy decision               Make or buy decision means the decision taken regarding…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Cost - volume - profit analysis  It is used to determine the changes in cost and volume of sales…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: Fixed costs will often be irrelevant for short-term decision making because they: O Do not vary on a…

A: Lets understand the basics.Costs are mainly divided into,(1) Fixed costs(3) Variable costsVariable…

Q: RUE OR FALSE. 1. If volume increases, all costs will increase. 2. Changes in the level of activity…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Monopolists sometimes practice price discrimination to O a. get rid of surplus product. O b,…

A: Correct answer:Option d:Increase profit

Q: A basic belief of variable costing is that period costs should be currently expensed. What is the…

A: A variable cost is one of the important method related to costing. Basically it is a expense of a…

Q: Match each definition (See picture) with related terms below: -Capacity -Common Fixed Costs…

A: Since we answer up-to three sub-parts we shall answer first three. Please resubmit a new question…

Q: Which of the following statements about operating leverage is NOT true? Group of answer choices…

A: The objective of the question is to identify the incorrect statement about operating leverage among…