Which of the following statements is false?   a. The price factor refers to the change in selling or cost prices assuming there has been no change in units sold.   b. The net gross profit variance can be computed by adding the sales price variance and the cost price variance.

Q: The Purchasing Agent in a firm would be most likely to be held responsible for which of the…

A: Variances analysis involves determining of deviations if any by comparing the actual results with…

Q: Which of the following is an assumption of cost-volume-profit analysis? a. The inventory quantities…

A: Whereas fixed costs remain constant, variable costs change in proportion to the volume of…

Q: Sales volume variances are attributable to differences between planned and actual activity volumes,…

A: Sales volume variances are a component of variance analysis used in cost and performance accounting.…

Q: What are the other external factors that affects the variance of a company's gross profit?

A: The difference between sales and the cost of goods sold results in the gross profit. This figure…

Q: Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A.…

A: Inflation and cost of goods sold - a company selling goods during periods of inflation will see an…

Q: Which statement may not always hold true? A. Increase in the units sold always lead to unfavorable…

A: In the given question, Option B - "Increase in Sale Price will always lead to favorable sales…

Q: When is the material quantity unfavorable? A.When the actual quantity used is less than the…

A: Material quantity variance =(AQ-SQ)×SP Where as,  AQ = actual quantity used SQ = standard or…

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…

A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…

Q: Which of the following statements about margin of safety is false? a. Margin of safety measures the…

A: margin of safety is that much sales is above the break even point sales.

Q: You are provided with the following information for Concord Inc. for the month ended June 30, 2020.…

A: The inventory can be valued using various methods: 1. FIFO 2. LIFO 3. Weighted average method

Q: Please answer in detail and tell me why other options are incorrect........   The most useful…

A: Following methods are used to find the valuation of the ending inventory 1) FIFO - First in first…

Q: CVP analysis

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

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: The product costs are the cost that are incurred to produce a product directly or indirectly.

Q: For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a.…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. FIFO stands for…

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: First: The inventory value shown on the balance sheet is generally higher under absorption costing…

A: Under variable costing, product cost consists of only variable manufacturing costs.  Under…

Q: variances. Sales mix variance…

A: Sales variance mainly comprises of three variances: sales price variance, sales volume variance and…

Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…

A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…

Q: A negative trend in Gross Margin may indicate that Cost of Sales is decreasing.  Group of answer…

A: Introduction: Formula: Gross margin = sales - cost of goods sold. Deduction of cost of goods sold…

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: Please check the step 2

Q: What are the relationships among a selling price variance, a sales mix variance, a sales…

A: Definition: Variance: Variance refers to the different levels in the actual cost incurred and…

Q: When selling prices and inventory costs are stable, a decrease in units sold would result to _sales…

A: Varaince is the difference of actual results and budgeted data.

Q: To arrive at gross profit, cost of goods sold is subtracted from the total of sales minus sales…

A: Gross profit is the profit that the company earns after deducting the cost of the goods sold to the…

Q: Below is the information on a project that you are evaluating for deciding on its worthiness as an…

A: The question is related sensitivity Anaysis. The details are given

Q: Considering the variance analysis, which of the following statements is true?

A: Variance analysis is the analysis which is the analysis only possible when the company has a…

Q: When the total direct labor cost variance is unfavorable, the direct labor rate variance will (must)…

A: Honor Code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Which condition would cause absorption-costing net income to be greater than variable-costing net…

A: Costing refer to the type of accounting which is used for assessing the total cost to be incurred in…

Q: If sales are measured and dollars the unit on the standard deviation of sales is dollars true or…

A: The degree of variance or dispersion in a group of values is measured by the standard deviation.…

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: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: Although there are many reasons to this concern, one of the general reasons in gross profit variance…

A: Introduction: Sales volume variance : This metric measures the deviations of the actual number of…

Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…

A: Hi student SInce there are multiple questions, we will answer only first question. Since first…

Q: Which of the following is true of a variable cost? Total variable cost remains constant with…

A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…

Q: s it always higher in cost of goods sold in Weighted average compared to FIFO?

A: Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis. In LIFO , cost of…

Q: Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write…

A: Selling price and sales volume have a direct relationship with the Gross profit i.e. increase in…

Q: The correlation (r) between the price of a product (x) and average daily sales (y) is –0.95.…

A: r=-0.95 1.The Coefficient  of determination-It is the proportion of the variation in the dependent…

Q: Rodolfo works at Johnson Incorporated and is tasked with measuring costs. When Rodolfo identifies…

A: The correct answer is option D : Unfavorable varianceThe negative discrepancy between actual…

Q: May I ask for an explanation to the question for a better understanding. Thank you! Gross profit…

A: Gross profit is profit earned after deductions of cost of goods sold.

Q: TRUE OR FALSE When actual production volume is less than expected volume, the production volume…

A: Fixed factory overhead volume variance = (Budgeted hours  -Standard hours required for actual…

Q: The gross margin estimation method estimates the cost of goods sold by O multiplying the costs to…

A: Gross Margin Estimation Methods for Cost of Goods Sold (COGS) are financial techniques used to…

Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…

A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…

Q: Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of…

A: In periods of rising prices, the method that would generally result in the same unit cost for…