The line that begins at the origin on a CVP graph represents     total expenses.     total fixed expenses.     total sales revenues.     both the total expenses and the total sales revenues.

Q: CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable.…

A: Introduction:- Cost-volume-profit analysis is used to measures how changes in variable and fixed…

Q: Which of the following is determined by subtracting all variable costs from the total selling price?…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs –…

A: Break-even point is the point at which there is no loss or no profit. It is because the sales…

Q: How important is it to trace costs appropriately?  Explain. As you are beginning to think about the…

A: Solution:- 1)Discussion of How important is it to trace costs appropriately as follows under:-…

Q: Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven…

A: Margin Of Safety is the difference between Break Even Sales and Actual Sales

Q: Match each of the following terms with the best definition. A. Theory of constraints B. Sunk cost…

A: Given the following question: Theory of constraints Sunk cost Differential analysis Opportunity…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and…

A: A mixed cost contains a fixed portion of cost incurred even when the facility is idle, and a…

Q: As compared to a traditional income statement format, which of the following terms do not appear on…

A: Where in the traditional income statement, Expenses are categorized in two different categories…

Q: Obtain and study a CVP graph and answer the next multiple choice 22. Select the correct statement…

A: Cost-Volume-Profit analysis: Cost-Volume-Profit (CVP) analysis is a managerial accounting technique…

Q: All of the following represents a cost-volume- profit relationship except: a. Total contribution…

A: Cost profit volume analysis relationship shows how the profit of a entity changes due to change in…

Q: A typical planning decision would be described as: Select one: O A. Monitoring actual sales…

A: Typically planning is Process of making a detailed proposal for doing or achieving something. In…

Q: Which of the following best describes an "opportunity cost"?     Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: Price accuracy and right product offering are important aspect of an efficient order-to-cash (OTC).…

A: Order to Cash (O2C) refers to a business process which involves the whole procedure of order…

Q: In a CVP income statement, cost of goods sold is generally O completely a variable cost. O…

A: A CVP (Cost-Volume-Profit) income statement is a financial statement that classifies costs as…

Q: Which of the statement is not a true reflection of Target cost gap ?   The target cost gap =…

A: target costing is the way in which deriving of a target cost is done to set the production manager…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

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: Select the correct statement concerning the cost-volume-profit graph at right:   At point B, profits…

A: In order to determine the Breakeven point (units), the total fixed cost is required to be divided by…

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: Accepting a special order will improve overall net operating income if the revenue from the special…

A: Variable costs are the costs which change with change in output. Sunk costs are the costs which are…

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: 1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and…

A: FIFO is one of the inventory valuation method being used in business. FIFO means first in first out.…

Q: 9. The point where the sales line and the total expense line intersects represents the A. profit…

A: Sales line: Sales line represents the sales incurred by the company over the specific period.…

Q: All of the following costs are relevant to a decision to accept or reject an order except 1.…

A: Relevent cost is the cost which helps in decision making or in other words the cost which has an…

Q: Match the following terms with the correct definitions: 1. Costs that do not change in total over…

A: Cost accounting is a form of managerial accounting used to assess the cost of production and various…

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: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…

A: A graphical representation of the relationship between production costs and total sales is shown by…

Q: 1) Cost-volume relationship states that maximum profit is reached by maximizing revenue. Select one:

A: the correct option with adequate explanation are as follows

Q: In Make or buy decision ,irrelevant costs are :  Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: Selling price less estimated profit margin may be used to arrive at cost if this gives a reasonable…

A: The cost of the inventories which has been sold out by the company can be estimated and computed by…

Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…

A: The question is multiple choice question.The question is related to cost volume profit analysis.…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.