Fundamentals of Cost Accounting
6th Edition
ISBN: 9781260708783
Author: LANEN, William
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 17, Problem 12CADQ
To determine
Determine the benefit of the given situation.
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When performing sales mix analysis, which one of the following is false:
O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point
O b. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution margin
O c. Making changes to the sales mix will likely cause a change in the breakeven point
O d. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product.
O e. The sales mix is usually assumed to be remain the same.
Which one of the following is a disadvantage of Mass Production system?
a.
Higher level of inventory at all levels and hence higher inventory cost.
b.
Larger space requirements.
c.
Breakdown of one machine will stop an entire production line.
d.
Higher cost due to frequent set up changes.
Explain sales cutoff tests.
Chapter 17 Solutions
Fundamentals of Cost Accounting
Ch. 17 - What complication arises in variance analysis when...Ch. 17 - Variance analysis can be useful in a manufacturing...Ch. 17 - How would you recommend accounting for variances...Ch. 17 - What does a manager learn by computing an industry...Ch. 17 - Why is there no efficiency variance for revenues?Ch. 17 - For what decisions would a manager want to know...Ch. 17 - If the sales activity or materials efficiency...Ch. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - What is the advantage of recognizing materials...
Ch. 17 - How could a professional sports firm use the mix...Ch. 17 - Prob. 12CADQCh. 17 - How could a hospital firm use the mix variance to...Ch. 17 - Prob. 14CADQCh. 17 - There is no reason to investigate favorable...Ch. 17 - Prob. 16CADQCh. 17 - Consider a firm in the sharing economy, such as...Ch. 17 - Prob. 18ECh. 17 - Prob. 19ECh. 17 - Prob. 20ECh. 17 - Variable Cost Variances: Materials Purchased and...Ch. 17 - Prob. 22ECh. 17 - Industry Volume and Market Share Variances DB Ice...Ch. 17 - Olive Tree Products sold 72,000 units during the...Ch. 17 - Prob. 25ECh. 17 - Sales Mix and Quantity Variances A-Zone Media...Ch. 17 - Prob. 27ECh. 17 - Sales Mix and Quantity Variances The restaurant at...Ch. 17 - Sales Mix and Quantity Variances Chow-4-Hounds...Ch. 17 - Materials Mix and Yield Variances Stacy, Inc.,...Ch. 17 - Materials Mix and Yield Variances Johns...Ch. 17 - Labor Mix and Yield Variances Matts Eat N Run has...Ch. 17 - Flexible Budgeting, Service Organization KB is a...Ch. 17 - Prob. 34ECh. 17 - Prob. 35ECh. 17 - Sales Price and Activity Variances EZ-Tax is a tax...Ch. 17 - Write a memo to the senior manager of EZ-Tax...Ch. 17 - Variable Cost Variances The standard direct labor...Ch. 17 - Refer to the information in Exercise...Ch. 17 - Prob. 40PCh. 17 - Variable Cost Variances: Materials Purchased and...Ch. 17 - Industry Volume and Market Share Variances:...Ch. 17 - Industry Volume and Market Share: Missing Data The...Ch. 17 - Sales Mix and Quantity Variances Lake Cellars...Ch. 17 - Analyze Performance for a Restaurant Dougs Diner...Ch. 17 - Nonmanufacturing Cost Variances FSBCU is a...Ch. 17 - Performance Evaluation in Service Industries Bay...Ch. 17 - Refer to the information in Problem...Ch. 17 - Prob. 49PCh. 17 - Refer to the data for the Peninsula Candy Company...Ch. 17 - Materials Mix and Yield Variances Plano Products...Ch. 17 - Pinnuck Products makes a liquid solvent using two...Ch. 17 - Labor Mix and Yield Variances Matthews Bros, is a...Ch. 17 - Refer to the information in Problem...Ch. 17 - Derive Amounts for Profit Variance Analysis...Ch. 17 - Flexible Budget Oak Hill Township operates a motor...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- How can the concept of a composite unit be used to explain why an unfavorable total sales-mix variance of contribution margin occurs?arrow_forwardWhich of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on the break-even point of an increase or decrease in fixed costs b.how many units must be sold to break even c.the identification of price and efficiency variances d.the ability to conduct sensitivity analysis of cost or price changesarrow_forwardWhich of the following is a possible cause of an unfavorable material price variance? A. purchasing too much material B. purchasing higher-quality material C. hiring substandard workers D. buying substandard materialarrow_forward
- When performing sales mix analysis, which one of the following is true: O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O b. Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product. O c. The sales mix is usually assumed to change. O d. Making changes to the sales mix will likely cause no change in the breakeven point O e. Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin DUS PAGE NEXT PAGE F8 F9 F10 F11 F4 F5 F6 F7 F1 F2 F3 * @ 2# % & 1 2 3 6 7 W E T Y F J K A 1. C {V }BYN í M 41 * Narrow_forwardDogarrow_forwardWhen performing sales mix analysis, which one of the :following is true .a .The sales mix is usually assumed to change .b Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point .C Making changes to the sales mix will likely cause no change in the breakeven point .d Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product .e Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin أخل اختیاریarrow_forward
- Which statement may not always hold true? A. Increase in the units sold always lead to unfavorable cost volume variance. B. Increase in sales price will always lead to favorable sales variance. C. In a multi-product company, the gross profit volume variance can be further analyzed into sales mix variance and final sales volume variance. D. Decrease in unit production cost will always lead to favorable cost price variance. E. Answer not givenarrow_forwardWhat is an example of a company and product that uses variance analysis to help contain cost?arrow_forwardIdentify the relative advantages and disadvantages of basing transfer prices on total costs, variable costs, and market prices. Please don’t copy from other programs.arrow_forward
- As a result of cost distortion, some products will be overcosted while other products will be undercosted. True Falsearrow_forwardExplain why a new product costing system may be needed when line managers suggest that an apparently profitable product be dropped.arrow_forwardAnswer two questions please 1-What is meant by the term variance? What advantages standard costing system offers? 2-If production exceeds sales, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?arrow_forward
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY