Which of the following statements regarding assumptions and limitations of CVP analysis is not correct? Multiple Choice   If unit prices change (for example, if the unit prices are lower for higher volumes), CVP analysis cannot be used.   CVP analysis relies on certain assumptions and these assumptions might limit the applicability of the results for decision making.   CVP analysis is a tool that the manager can use to help with decisions.   The assumptions of constant unit variable cost and constant unit prices for all levels of volume as important limitations of CVP analysis.   The limitations are due to the assumptions that the cost analyst makes; that is, they are not inherent limitations to the method of CVP analysis itself.

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: ‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: solution : concept : variable costs               variable costs are those costs which varies along…

Q: A weakness associated with cost-based pricing methods is that they do not allow for primary…

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Q: AW-analysis of engineering economics problems may be preferred over other methods because:…

A: Annual worth is the equivalent annual value for the net present value calculated. Net present value…

Q: Controllability has little to do with whether a cost is fixed or variable.  Select one: True False

A: Fixed cost is the cost that is related to the production of a good or services. It is the amount…

Q: When absorption costing is used a. management may be tempted to overproduce in a given period in…

A: Absorption costing is a method of calculating the cost of a product or enterprise by taking into…

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: What is the chief drawback of the high-low method of cost estimation? What problem could an outlier…

A:

Q: Why do managers consider Direct Coasts to be more accurate than Indirect  Costs?  How do managers…

A: Direct costs are the costs which are directly identifiable in the manufacturing process.  Indirect…

Q: If the organization operates at an activity level outside the relevant range, any cost predictions…

A: Answer:-  Relevant range meaning:- The term "relevant range" describes a particular activity level…

Q: If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the…

A: Economic Order Quantity is a model which aims to minimize the total inventory cost including the…

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: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: Which of the following is not a reason for stockpiling? Lūtfen birini seçin: a. Minimize holding…

A: Stock piling refers to the process of keeping inventory in bulk. It is an attempt to produce at…

Q: What is a good response to this post? Being that the big difference between the two margins is…

A: POST:Being that the big difference between the two margins is mostly in fixed costs, this plays a…

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: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: Sunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree?…

A: Suck Cost: a cost that has already been spent but cannot be recouped; this kind of expense is…

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: Cost calculation

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Q: Describe the behavior of fixed and variable costs as activity levels change. Use graphs to…

A: Answer:-  Fixed cost meaning:- Fixed costs are expenses that remain constant regardless of whether…

Q: Which of the following statements about the use of relevant cost analysis in decision making is…

A: The Cost  play an important role in decision making because it is concern with all the decisions…

Q: Which costing system is helpful for internal managers when they're trying to make a short- term…

A: Cost Accounting is a process of identification, classification, measurement, and assignment of costs…

Q: Obtaining regression estimates for cost estimation requires establishing the existence of a logical…

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Q: 1. Which of the following is a disadvantage of the Variable Costing method? A. The data available…

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Q: Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that…

A: Cost allocation refers to the process of distributing the single cost among various companies,…

Q: In a drop or continue decision, only the variable costs identified with a product are relevant in a…

A: The given statement is true.

Q: Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

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Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: Given the weaknesses of cost-based pricing, why wouldany company use this method?

A: Cost-based pricing means setting prices based on the cost of goods and services.  The major…

Q: It known that variable costing should be used for pricing purposes. What is the benefit of using…

A: There are mainly two types of Costing systems that are variable costing and absorption costing.…

Q: In your own words, explain what differential costs mean. How are fixed costs and variable costs…

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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.…

Q: Distinguish between the downward demand spiral and the ramifications of this for price choices

A: This question tells about  the downward demand spiral and the ramifications of this for price…