Use the following information about sales and costs to prepare a scatter diagram. Draw a cost line thatreflects the behavior displayed by this cost. Determine whether the cost is variable, step-wise, fixed,mixed, or curvilinear.PeriodSalesCostsPeriodSalesCosts$760$5909.$580$3902.80056010.3202403.200230II.240230440040012.720550548039013280260662055014.4404107680590153802608540430

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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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Chapter 21: Cost Behavior and Cost-Volume-Profit Analysis Requirement 1: Please explain variable, fixed, and mixed costs. and provide one example of each.
Rahul
A paper published in the Harvard Business Review points out a new way to calculate economic profit that could be more appropriate for service firms and other people-intensive companies. Instead of focusing on investment and return on investment, the focus is on employee productivity, in terms of both generating revenues and reducing costs. The approach is to first determine economic profit in the conventional way, except that we ignore taxes, so that economic profit is before tax, as follows: Economic profit = Operating profit − Capital charge Assume the following information for a hotel chain that wishes to adopt the new method. The firm has $100 million in operating profit, has $1 billion in investment, and uses a cost of capital rate of 5%, so the capital charge is $50 million and the economic profit is $50 million. Relevant calculations are contained in Part 1 of the following schedule: Part 1: Economic Profit (in thousands, except cost of capital rate) Revenue $…
Based on below, Activity-Based Costing and Analysis Cost Behavior and Cost-Volume-Profit Analysis Provide a hypothetical example of multiproduct break even analysis. (Need Excel Chart)
When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in Units” (or “Change in Total Cost divided by Change in Activity Level”) is used to estimate the: Fixed cost per unit Mixed cost per unit Profit per unit Indirect cost per unit Variable cost per unit Differential cost per unit Opportunity cost per unit
Cost-volume-profit analysis is used to make many decisions, including product pricing and controlling costs. Are these assumptions always valid?
TRUE/FALSE. Write T' if the statement is true and 'F' if the statement is false. 17) Target costing sets prices by computing an average cost and then adding a desired markup.
Define the term break-even point. What is the variable cost ratio? The contribution margin ratio? How are the two ratios related? Define the term sales mix. Give an example to support your definition.
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PLEASE USE THIS TIME TO ANSWER THIS. AYAW NA PAGHULAT UG DEADLINE, TOMORROW IS ANOTHER DAY. PLEASE DEFINE AND GIVE THE FORMULA OF THE FOLLOWING (IF THERE IS ANY): PLEASE ANSWER HERE DIRECTLY 1. absorption costing 2. activity bases (drivers) 3. break-even polnt 4. contributlon margin 5. contributlon margin ratlo 6. cost behavlor 7. cost-volume-profit analysls 8. cost-volume-profit chart
Management uses Cost Volume Profit (CPV) analysis as a planning process to predict the future volume of activity, costs incurred, sales made and profit received. Required: i. List and explain FIVE assumptions in C-V-P analysis.
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