cvp analysis with multiple products assumes that sales will continue at the same mix of products, expressed in either sales units or sales dollars. This assumption is essential, because a change in the product mix will probably change:
A. The weighted-average sales price.
B. The weighted-average variable cost.
C. The weighted-average contribution margin.
D. All of the above.
E. None of the above.
in performing short-term CVP analysis for a new product or service, the decision-maker would:
A. include all current and future fixed costs.
B. Include only current fixed costs.
C. Include only future fixed costs.
D. Include only incremental fixed costs.
E. Include only allocated fixed costs.
The major problem with relevant cost determination is that it fails to recognize the:
A. impact of variable costs in the long run
B. Long-term nature of most product-related decisions.
C. “sunk” nature of most fixed product costs.
D. Short-term nature of most product-related decisions.
E. Need to calculate costs more precisely.
Depreciation is a relevant cost in a decision only in the context of:
A. Time value of money.
B. Amortized values.
C. Reducing tax liability.
D. Sunk cost.
E. Financial accounting.
A useful device for solving production problems involving multiple products and limited resources is:
A. Gross sales per unit of product
B. Contribution per unit of scarce resource
C. Net profit per unit of product
D. Total expense
E. Total benefit
One of the behavioral problems with relevant cost analysis is the overemphasis on:
A. Short-term goals
B. Unit fixed costs
C. Opportunity costs.
D. Long-term stategic goals
E. None of the above
1. D all of the above
2. B. include only current fixed costs
3. B. Long-term nature of most product-related decisions
4. B. Amortized Values
5. B. Contribution per unit of scarce resource
6. A. short-term goals
The only one I’d seem to be able to answer is the last two, which I would say is B and C respectively.
I havent done CVP in quite some time as I’ve passed the papers already..
Let us noe the answers when u get them
I know, some people act like it cost money to give out a star. Com on folks don’t be so stingy.
Maybe try this site:
Otherwise I wish I could help you.