is particularly useful in the early stages of planning when it provides a framework for discussing planning issues. Q15-4. In a contribution income statement‚ costs are classified according to behavior as variable or fixed‚ and the contribution margin (the difference between total revenues and total variable costs) that goes toward covering fixed costs and providing a profit is emphasized. In a functional income statement‚ costs are classified according to function (rather than behavior)‚ such
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3 Cost-Volume-Profit Analysis Learning Objectives 1. Explain the features of cost-volumeprofit (CVP) analysis 2. Determine the breakeven point and output level needed to achieve a target operating income 3. Understand how income taxes affect CVP analysis 4. Explain how managers use CVP analysis in decision making 5. Explain how sensitivity analysis helps managers cope with uncertainty 6. Use CVP analysis to plan variable and fixed costs 7. Apply CVP analysis to a company producing multiple
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Types of volcanism associated with plate margins There are two types of plate margin. When there is a boundary between two diverging tectonic plates‚ such as between the North American and Eurasian plates‚ it is known as a constructive plate margin. This is because it recognises the importance of magma rising up from the mantle to create new crustal rock. The boundary between two converging plates is known as a destructive plate margin‚ as it is responsible for more violent seismic activity‚ volcanoes
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Competition Bikes Finical Analysis Dan Petersen WGU – JET2 Finical Analysis Task 4 A. 1. To: Vice President This report has been prepared to argue the case that the company’s current costing method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with
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BA 117 Problem Set #1 - CVP Deadline: November 26‚ 2011 A. The break-even point in units can be computed as Fixed Costs divided by the contribution margin per unit. On the other hand‚ the break-even point in pesos can be computed as Fixed Costs divided by the contribution margin ratio. Using the profit equation π = TR – TC; where π = operating profit‚ TR = Total Revenue and TC = Total Cost‚ derive the break-even formulas. B. From the profit equation π = TR – TC‚ derive the formula for the
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Direct Material | 290000 | 326250 | 432500 | -106250 U | Direct Labor | 168000 | 189000 | 174000 | 15000 F | Variable Overhead | 324000 | 364500 | 375000 | -10500 U | Total Variable Costs | 782000 | 879750 | 981500 | -101750 U | Contribution Margin | 818000 | 920250 | 796000 | 124250 U | CALCULATION Revenue = 225000 X 8.00 per pound = 1800000 Direct material (quantity) =290000 / 200000 = 1.45 Direct material = 1.45 X 225000
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INCREMENTAL ANALYSIS TRUE-FALSE STATEMENTS 1. An important step in management ’s decision-making process is to determine and evaluate possible courses of action. 2. In making decisions‚ management ordinarily considers both financial and nonfinancial information. 3. In incremental analysis‚ total variable costs will always change under alternative courses of action‚ and total fixed costs will always remain constant. 4. Accountants are mainly involved in developing nonfinancial information
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1. List down the characters and analyze their professional personalities/attitudes in this movie. Jared Cohen Suggested that they should sell all the products Not responsible Should consider the long term effect of every action that they take John Tuld Decided to sell all the products to the same buyers and any new buyers He argues that the action made is for the sake of the company Agency problem - conflict of interest Ruin the company reputation and loss people trust Sam Rogers Facing a dilemma
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Ex. 20.1 Listed below are nine technical accounting terms introduced in this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each statement‚ indicate the accounting term described‚ or answer "None" if the
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provides all the vital dietary supplements such as herbs for women’s‚ vitamins‚ and minerals for all the consumers (mainly women’s)‚ distributors and retailers. They are struggling to break even‚ with relatively flat annual sales growth and thin margins. SNC generates $ 10 million in revenues and holds a large selection of SKU’s of around 50 third party brands. They held cash reserves of $ 300‚000 at all times to meet its operational needs. They have a credit line facility with a limit of $ 3‚200
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