Under the Towne profit sharing plan O standards are fixed for labour costs and actual cost compared with these. O standards for output are decided and actual output compared with these. O the output of a firm is measured with respect to group performance. O bonus hours are computed in proportion to the time taken.

Under the Towne profit sharing plan O standards are fixed for labour costs and actual cost compared with these. O standards for output are decided and actual output compared with these. O the output of a firm is measured with respect to group performance. O bonus hours are computed in proportion to the time taken.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In order to determine the optimal sales mix for a company, one should evaluate the contribution margin per unit of whatever the scarce resource is True or Faise
1. What is a segment of an organization? Give a few examples of segments of Walmart Corporation. 2. What costs are assigned to a segment under the contribution approach? 3. Distinguish between a traceable fixed cost and a common fixed cost. 4. Explain how the contribution margin is different from the segment margin. 5. Why aren't common fixed costs allocated to segments under the contribution approach?
1. To compute the breakeven point using the contribution margin, we get the ratio of a. Total fixed expenses and Total contribution margin b. Total variable expenses and Total Contribution margin c. Total fixed expenses and Contribution margin per unit d. Total variable expenses and Contribution margin per unit 2. A mathematical expression that describes a breakeven point of a company is a. Sales Revenue = Variable expenses + Fixed expenses b. Sales Revenue = Variable expenses - Fixed expenses c. Sales Revenue < Variable expenses + Fixed expenses d. Sales Revenue > Variable expenses - Fixed expenses 3. The Cost-Volume-Profit equation is given by a. Sales Revenue = Profits + Contribution margin ratio + Fixed expenses b. Sales Revenue = Profits + Contribution margin + Fixed expenses c. Sales Revenue = Profits+ Variable expenses + Fixed expenses d. Sales Revenue = Profits -Variable expenses…
A segment of a business responsible for both revenues and expenses would be called: Multiple Choice a cost center. a profit center. residual income. an investment center.
How may managers at EY Australia and Unilever benefit from the activity-based cost information?
In companies are ready to compensate their employees according to how much they produce at different piece rates. a. Salary Plus Commission b. Variable Commission Scale c. Straight Piece Rate d. Differential Pay
Cost-volume-profit (CVP) analysis for revenue planning determines: The desired profit level of a firm. Both revenue maximization and cost minimization. The costs associated with a certain level of revenue. The max amount of revenue a firm can receive. The revenue required to achieve a desired profit level.
Discuss the components of the Contribution Margin Income Statement, how does management use this in the decision making process?
For each of the following, select its best description. A. Incurs costs without directly yielding revenues. B. Costs that a manager has the ability to affect. C. Incurs costs and also generates revenues. D. Holds manager responsible for revenues, costs and major investing decisions. E. Lists actual costs a manager is responsible for and their budgeted amounts. F. Unit managers make decisions and top management then evaluates the performance of unit managers. 1. Decentralized organization 2. Controllable costs 3. Responsibility accounting performance report 4. Profit center 5. Investment center 6. Cost center
Indicator operational leverage is defined as a. A ratio of variable costs over total costs of respective business entity b. A ration of total costs over fixed costs of respective business entity c. A ratio of fixed costs over total costs of respective business entity d. A percentage amount of total costs that are employed for the operational act
1
What is downsizing? A. An integrated approach configuring processes, products, and people to match costs to the activities that need to be performed for operating effectively and efficiently in the present and future. B. A comparison of the quantity of output produced with the quantity of an individual input used. C. The amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period. D. An organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.