Ac330

In: Business and Management

Submitted By cheker83
Words 394
Pages 2
COST-VOLUME-PROFIT RELATIONSHIPS
1.
Distinguish between variable and fixed costs. Variable costs are costs that vary in totaldirectly and proportionately with changes in the activity index. Fixed costs are costs thatremain the same in total regardless of changes in the activity index.2.
Explain the significance of the relevant range. The relevant range is the range of activityin which a company expects to operate during a year. It is important in CVP analysisbecause the behavior of costs is linear throughout the relevant range.3.
Explain the concept of mixed costs. Mixed costs increase in total but not proportionatelywith changes in the activity level. For purposes of CVP analysis, mixed costs must beclassified into their fixed and variable elements. One method that management may use isthe high-low method.4.
List the five components of cost-volume-profit analysis. The five components of CVPanalysis are (a) volume or level of activity, (b) unit selling prices, (c) variable cost per unit,(d) total fixed costs, and (e) sales mix.5.
Indicate what contribution margin is and how it can be expressed. Contribution marginis the amount of revenue remaining after deducting variable costs. It can be expressed as aper unit amount or as a ratio.6.
Identify the three ways to determine the break-even point. The break-even point can be(a) computed from a mathematical equation, (b) computed by using a contribution margintechnique, and (c) derived from a CVP graph.7.
Define margin of safety and give the formulas for computing it. Margin of safety is thedifference between actual or expected sales and sales at the break-even point. Theformulas for margin of safety are Actual (expected) sales – Break-even sales = Margin of safety in dollars; Margin of safety in dollars ÷ Actual (expected) sales = Margin of safetyratio.8.
Give the formulas for…...

Similar Documents

Unknown

...2752 12567 1712 3168 1051 6707 9717 3811 621 955 8436 15306 2989 (*) Mere assigning a rank / selection of a seat by a candidate does not confer andy right to join the course / college. Seat selection and later admission will purely dependent on fulfillment of eligibility criteria prescribed by the Competent Authority RANK LIST OF MBA CANDIDATES WHO HAVE APPEARED FOR THE ENTRANCE TEST FOR ADMISSION TO MBA COLLEGES FOR THE YEAR 2012-13. M.B.A Sl No. 1201 1202 1203 1204 1205 1206 1207 1208 1209 1210 1211 1212 1213 1214 1215 1216 1217 1218 1219 1220 1221 1222 1223 1224 1225 1226 1227 1228 1229 1230 1231 1232 1233 1234 1235 1236 1237 1238 1239 1240 1241 1242 1243 1244 1245 1246 1247 1248 1249 1250 CET NO. AC324 AC325 AC326 AC327 AC328 AC329 AC330 AC331 AC332 AC333 AC334 AC335 AC336 AC337 AC338 AC339 AC340 AC341 AC342 AC343 AC344 AC345 AC346 AC347 AC348 AC349 AC350 AC351 AC352 AC353 AC354 AC355 AC356 AC357 AC358 AC359 AC360 AC361 AC362 AC363 AC364 AC365 AC366 AC367 AC368 AC369 AC372 AC373 AC374 AC375 Candidate Name GENDER Version Code CET SCORE MBA Rank(*) kavya.s Shalini.D NIRMALA S M Bhooshith B Shruti Chanaveer KUSUM GAUR NIRMALKUMAR B ROHINI.T.P Narendra.B.K Kiran.B.O Murugan S MONISHA M B RAVINDRA R JAYASHREE.D Deepak S Manoj M S SNEHA.R.S Rashmi Prakash Bhandare mohd shamim alam BHARATH B GOWDA ABDUR RAHMAN SURESH S blesson t mathews RAJATH S TANISH B R NAGENDRA M S JUNAID AHMED NAVEEN HM Shobha R SANTOSH DHONDU VARAK KUMAR R S SWATHI BHAPAT N Jeevan Ram R LOHITH L N......

Words: 186272 - Pages: 746

Blake Romney Ethics Case, Unit 5 Ac330

...This week’s Discussion topic is BYP7-7, Ethics Case, on page 330 of your textbook which reads as follows: “Blake Romney became Chief Executive Officer of Peters Inc. two years ago. At the time, the company was reporting lagging profits, and Blake was brought in to "stir things up." The company has three divisions, electronics, fiber optics, and plumbing supplies. Blake has no interest in plumbing supplies, and one of the first things he did was to put pressure on his accountants to reallocate some of the company’s fixed costs away from the other two divisions to the plumbing division. This had the effect of causing the plumbing division to report losses during the last two years; in the past it had always reported low, but acceptable, net income. Blake felt that this reallocation would shine a favorable light on him in front of the board of directors because it meant that the electronics and fiber optics divisions would look like they were improving. Given that these are "businesses of the future," he believed that the stock market would react favorably to these increases, while not penalizing the poor results of the plumbing division. Without this shift in the allocation of the fixed costs, the profits of the electronics and fiber optics divisions would not have improved. Now the board of directors has suggested that the plumbing division be closed because it is reporting losses. This would mean that nearly 500 employees, many of whom have worked for Peters their whole......

Words: 762 - Pages: 4

Ac330 Unit 5

...A previously incurred cost which will not change in the future is a(n) opportunity cost. historical cost. fixed cost. sunk cost. 2. Specik, Inc. is considering the following alternatives: Alternative 1 Alternative 2 Revenues $120,000 $120,000 Variable costs 60,000 70,000 Fixed costs 35,000 39,000 Which of the following are relevant in choosing between the alternatives? Variable costs Revenues Fixed costs Variable costs and fixed costs 3. Sorrento Company's plant is operating at less than full capacity. The company just received a one-time opportunity to accept an order at a special price below its usual price. The special price exceeds its variable costs. Therefore, which statement is true? Fixed costs are relevant. The order will likely be accepted. The order will likely be rejected. Sorrento should expand its plant capacity before accepting the order. 4. Wishnell Toys can make 1,000 toy robots with the following costs: Direct Materials $70,000 Direct Labor 26,000 Variable Overhead 15,000 Fixed Overhead 15,000 The company can purchase the 1,000 robots externally for $120,000. The avoidable fixed costs are $5,000 if the units are purchased externally. What is the cost savings if the company makes the robots? $1,000 $5,000 $10,000 $4,000 5. Which one of the following is not a disadvantage of buying rather than making a component of a company's product? Quality control specifications may not be met. The outside supplier could increase prices significantly in the future.......

Words: 496 - Pages: 2

Boeing Versus Airbus

...The future acquisition, the KC-Z, would replace the KC-10, the large-sized tanker. Boeing assumed the Air Force’s overall intentions were to bring down the size of all of their tanker fleet to a medium-size. Boeing attributed the Air Force’s mindset “excess capacity” compromises fundamental requirements of “deployability and survivability”. (GAO, 2008) Boeing assumed the Air Force was quite satisfied with the size of Boeing’s KC-767 because it precisely “met” the Air Force’s requirements detailed in the RFP. (Boeing, 2008) It was not the intention of the Air Force to buy specifically made refueling tankers from scratch. The offerors were to reconfigure their existing commercial models for lease. The Boeing’s 767 (KC-767) and the Airbus AC330 (KC-30) fitted the bill. It is noted too in this research that NGC/EADS KC-30 is a much larger aircraft than both the KC-767 and the KC-10. It is also noted the original RFP did not establish any size requirements as an awarded factor. Through discovery, Boeing argued “exceeding” notion of a Key Performance Parameters (KPP) objective regardless of size should not have been credited to NGC/EADS based on the advantage it’s KC-30 to carry more fuel to offload. Boeing stated their discussions throughout the process with the Air Force never implicated that size requirements will be heavily valued by exceeding rather than meeting the requirements. In the protest, the GOA concurred that Boeing was of the assumption that no credit should have......

Words: 2476 - Pages: 10

Mt435-01 Operations Management

...of cash flow for the showing of where you or your organization is using funds for development of products such as material and manufacturing. The financial statements to review with the stakeholders and other invested in a small or large organization. The formulas of the horizontal to vertical analysis to show of the health of company’s balance sheets and the different area of ratios analysis, to keep an eye on the loss prevention and balance of the month to date or year to date costs. All of the areas of accounting processes are to keep from running of a business from a negative to a positive healthy financial organization, as to name a few accounting areas I have learned and absorbed during the term. The nine weeks of completing the AC330 Management Accounting course has confirmed the amount of close monitoring of funds to operate an organization and being a responsible, reliable, and ethical as my role of a manager. The best wakeup call in doing this course was to use the concepts in my own personal and business financial affairs to see just how healthy my financial judgments are and, to make ethical decisions to change those judgments. The course has also made my academic confidence level strong in facing a problem with further accounting topics more at ease and with anxiety. The term has now ended and I feel more confident on moving forward with completing the next course and accomplishing my goal of earning a Bachelor’s of Science in Business......

Words: 469 - Pages: 2

Managerial Accounting

...Basillio Corespondencia AC330 - Managerial Accounting for Business Professionals Professor Christine Covan Unit 10 Writing Assignment   Reflect and describe which key concepts and topics in this course have made you a stronger candidate to enter the business world. When I first began this course, I didn’t really understand what Managerial accounting for Business Professionals were. I was very confused and also a bit intimidated with what is expected and how is the professor going to be. In my previous classes I have had some professors who seem to not care about us students. I have felt often that since it’s an online environment they could answer whichever way they want because there isn’t anyone to meet face to face to speak. Professor, you have been a wonderful teacher and mentor for us. I couldn’t have asked for anyone better. Even though some of the weeks were challenging I was able to overcome them. What I enjoyed the most was the budgeting planning in Unit 6.I am always looking to grow within my job and department, so learning some other things and being able to speak with my peers about what I have learned enables me to show that I am eager to move up the ladder of success and get promoted. I think that the Wiley assignments were very educational and with the 5 chances that we were given to do the work, this really helped me analyze and truly learn how to solve a problem. Discuss how this course has affected you in your professional development as a...

Words: 366 - Pages: 2

Universel Enfant Adulte Brassier Gilet de Sauvetage Flottant Canoë Kayak Bateau | Baseus (159) | Mathematics for Finance: An Introduction to Financial Engineering