If a company's variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? * O a. P = 2/FC O b. P = FC/.2 O CP - 27/FC

If a company's variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? * O a. P = 2/FC O b. P = FC/.2 O CP - 27/FC

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Problem 2.30 Systems Concepts, Traditional versus Activity-Based Cost AccountingSystemsThe following…

A: Activity-based costing represents the costing method that assigned the cost to each activity based…

Q: Q1 discuss in detail Cost Accounting, Objectives of Cost Accounting, Essentials of a good…

A: Cost accounting is branch of management accounting in which all costs related with the products like…

Q: Cost assignment and cost accumulation are the two cost accounting system processes that helps…

A: Costing is the method of recording, all cost incurred in process of completing product project and…

Q: A Report a Problem O Revisit Choose the best option Question # 2 With reference to cost…

A: The costs in the production process can be classified on a different basis, for financial reporting…

Q: Manufacture have established a cost classification called product costs. Define the term "product…

A: Product Costs: These are the expenses related to producing or creating a product. It consists of…

Q: Discuss four example each of relevant cost and irrelevant cost.

A: Relevant cost are those cost which are pertinent to a decision. It is helpful in decision making.…

Q: scuss the Financial Accounting Standard Board’s (FASB’s) Conceptual Framework Proj

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: VOLUME BASED COST SYSTEMS Pg 4 Would you please tell me the formula and how to solve for "Total…

A: Manufacturing overhead costs: Manufacturing overhead costs are costs that are not directly related…

Q: Managers must classify all costs as either product costs or period costs to: Measure operating…

A: Cost estimation is defined as the process of determining the cost of a product or service. This…

Q: plain 4 objectives of cost accou

A: Cost accounting refers to type of accounting which computes the sum total of expenses involved in…

Q: Question 44 Which of the following is most likely a fixed cost? A. Labor cost. B. Energy cost.C.…

A: Fixed Cost: Such costs do not vary with the increase or decrease in the volume of production.…

Q: 24 What is Cost object in Activity based costing? a. It is an item for which cost measurement is…

A: answer

Q: Question 2 Direct costs: are incurred to benefit a particular accounting period. are incurred due to…

A: Direct cost are those cost which can be directly link to the manufacturing of goods or rendering of…

Q: How was total cost (a) found for #1?

A: Total cost for any product or service is calculating by taking sum of variable cost of the total…

Q: 10. Total of all direct costs is termed as A. prime cost B. works cost C. cost of sales D. cost of…

A: Option a: This option is correct because prime cost in accounting refers to the total direct costs…

Q: Which of the following used as a measure of the quantity of resource consumed by an activity?

A: Activity-Based Costing is a modern costing approach. These are the methods that identify the…

Q: Which of the following statements is true? * O a. A common cost is one type of direct cost. O b. A…

A: The question is related to Choose which of the statement is true.

Q: What is target cost per unit? Question content area bottom

A: Target cost is the cost which is sufficient to develop specified functionality and quality of a…

Q: Cost assignment and cost accumulation

A: Cost assignment is a process used in cost accounting system to allocate costs among products,…

Q: What is the main difference between absorption costing and variable costing system. How does…

A: Absorption costing is a method of costing used to account for all manufacturing costs particular to…

Q: Match the type of cost shown in the left column with the corresponding description shown in the…

A: 1. Irrelevant Cost - (B) A cost that is not pertinent to a particular decision. 2. Future Outlay…

Q: Describe ABC Required: a What is activity-based costing and how does it differ from traditional…

A: SOLUTION- Activity-based costing and traditional absorption costing are the two different approaches…

Q: Choose one correct answer by writing down the question number and the letter representing the answer…

A: Costs are classified as direct and indirect costs. Direct costs are a cost which is directly related…

Q: With respect to Pricing decision in Cost Accounting, state any 4 situations where pricing below…

A: Pricing decision plays an important role in an product sales and growth where the price of the…

Q: tracing and allocating cost to cost object

A: Cost Allocation is the process of identifying various cost pools and allocating them to cost object…

Q: **Question:** Which method is commonly used in accounting to compare actual costs with standard…

A: Activity based costing - It assigns overhead costs to products based on activities they require

Q: Which of the following is not a function of Cost Accounting? a. Control cost b. Reporting to owners…

A: Solution: "Reporting to owners" is not a function of Cost Accounting. This is because the functions…

Q: Select which of the following requires a separate measurement of cost. a. Activity b. Volume c.…

A: Solution: A cost object is anything for which a separate measurement of costs is desired.

Q: Question 4: Define the following:…

A: Variable cost refers to that cost which variate with the variations in the production or sales…

Q: Q3 Explain the similarities and differences between job order cost and process cost system

A: Job order costing means finding or calculating costs associated with a job that is specific or a…

Q: Question Content Area Which of the following graphs in Figure 1 illustrates the behavior of a total…

A: Dear student, below is the answer to your question along with a detailed explanation:Part 1:…

Q: Question 2 Compare and contrast absorption and marginal costing.

A: The income statement is prepared on the basis of Marginal costing or absorption costing.

Q: QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v…

A: Cost Accounting: Cost accounting is characterized as "a methodical arrangement of methodology for…

Q: Describe the value chain

A: “Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: 4. Describe and list examples of the three category of expenses? Product costs Period costs…

A: Expenses are an essential part of running any business, as they represent the costs that must be…

Q: carrying cost?

A: Which one of the following is a carrying cost Correct answer :- Cost of obsolescence.

Q: Which of the following is a costing method? O a. a. Target Costing O b. Standard Costing c. Marginal…

A: Solution: "Job costing" is a costing method. This is because main costing methods include job…

Q: QUESTION 34 Which of the following statements is true? O Indirect costs are allocated to cost…

A: Cost can be allocated on basis of two categories such as direct cost and indirect cost. Direct can…

Q: Question #2 What is absorption costing and marginal costing in the context of overhead costs?…

A: Overhead costs are the indirect costs incurred in operating the business. It does not include any…

Question

100%

QUESTION 27

Cost Accounting
Choose the answer from the choices

If a company's variable costs are 70% of sales, which formula represents the computation of
peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in
pesos for the period and FC equals total fixed costs for the period? *
O a. P = 2/FC
O b. P = FC/.2
O C.P = .27/FC
O d. P = FC/.27

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Question 2 of 5 Costing system, which classifies cost into cost categories based on when an expense is incurred in process is called Process costing system Both Neither Job order costing system
11
What is the purpose of cost allocation in terms of economic decisions, motivation and justifying costs? Answer in 250 words.
What is the right cost hierarchy in Activity-Based-Costing ABC Select one: O a. Organization, facilities, products, customers, batch level and then unit level O b. Organization, facilities, customers, products, batch level and then unit level O c. Organization, products, facilities, customers, batch level and then unit level O d. Organization, customers, products, facilities, batch level and then unit level
In cost terms, direct labor cost is included inA. Manufacturing costsB. Prime costsC. Conversion costsD. B and CE. A, B and C
QUESTION 43 Which of the following approaches allocates overhead with the use of a predetermined overhead rate and standard level of activity? A. standard costing B. normal costing C. target costing D. process costing E. actual costing
Explain in details what the textbook means by a “cost hierarchy”
ANSWER ANY TWO QUESTIONS 1. What is the meaning of cost accounting? Write any FIVE objectives of cost accounting. 2. Briefly explain the elements of cost.
2- The ABC costing method * a) is based on the Pareto curve b) is absorption costing c) allows you to track the most important activities d) does not present cost apportionment
When using a standard cost system what term is referred to what a product does cost? Group of answer choices actual valid standard none of the above
estion 2 Which of the following way of cost assignment used to assign accumulated cost with an indirect relationship to a cost object? Cost allocation Cost tracing Cost accumulation Cost assignment
Q.3.4 Briefly discuss the following concepts. Your discussion should include reference as to how it is determined: Actual manufacturing overhead costs. Budgeted manufacturing overhead costs. Allocated or applied manufacturing overhead costs. ●