An important assumption of cost-volume-profit analysis is that a. both costs and revenues are linear functions. b.

Question:

An important assumption of cost-volume-profit analysis is that
a. both costs and revenues are linear functions.
b. all cost and revenue relationships are analyzed within the relevant range.

c. there is no change in inventories.
d. sales mix remains constant.
e. all of the above are assumptions of cost-volume-profit analysis.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

See More Books

Question Posted: Aug 20, 2022 07:31 AM

See More Questions

Describe cost volume profit analysis and how management can use it in more than just financial analysis. Explain the main differences between operating income and net income overall for a business....
Maker’s Chamber Corp is conducting cost volume profit analysis for roughly estimating the company's profit and other cost figures. The analysis shows that breakeven for the X division is...
What are three of the ways cost volume profit analysis may be used?
Tom Jones, the mechanic at Golden Muffler Shop, is able to install new mufflers at an average rate of 4 per hour (or about 1 every 15 minute), according to a negative exponential distribution....
During the current year, Karen sells her entire interest in Central Corporation common stock for $22,000. She is the sole shareholder, and originally organized the corporation several years ago by...
Explain the main purposes of control accounts?
It seems that there are many ways for fraud and abuse to take place in the field of accounting. How can this occur when there are so many regulatory bodies and professional accounting standards in...
Compute the payback period for each of these two separate investments (round the payback period to two decimals): a. A new operating system for an existing machine is expected to cost $250,000 and...
relations are true for every n1: a) i=1 1 n (21-1)(2i+1) 2n+1 b) 13-1 = (3n-1) Using mathematical induction, show that the following
6.13. Determine expressions for G*, H*, and S implied by the Dieterici equation: RT P = exp V - b VRT Here, parameters a and b are functions of composition only.
In the cost-volume-profit graph, a. the break-even point is found where the total revenue curve crosses the x-axis. b. the area of profit is to the left of the break-even point. c. the area of loss...
The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves a. margin of safety. b. operating leverage. c. degree of operating leverage. d. sensitivity...
Notigi Mines Ltd. (Notigi) is a mining venture that recently began operations in northern Manitoba. The mine has been under development for the last two years and will produce its first shipments of...
What is Starbucks doing to sustain its competitive advantage over competitors? What else might they do to continue to be competitive relative to others in their industry?
Describe the different types of training. How do organizations provide each type of training?
Starbucks charges more for coffee than its Chinese competitor Luckin. Starbucks also has followed Luckin by offering coffee delivery. What kind of differentiation strategy is Starbucks currently...
As a result of organizational cost-cutting, new-hire orientation is cut short to a few days. Describe how this will affect retention.
How is the way that Kevin Johnson is leading Starbucks different from the way that Howard Schultz led the company as an entrepreneurfounder?
(a) What is the approximate ductility (%EL) of a brass that has a yield strength of 275 MPa (40,000 psi)? (b) What is the approximate Brinell hardness of a 1040 steel having a yield strength of 690...
Suppose that you are part of a virtual team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit...
An investor is considering investing in the long-term bonds and common stock of Companies M and N. Both firms operate in the same industry. Both also pay a dividend per share of $8 and have a yield...
Using the data below from the financial statements of Braugh, Inc., compute the companys cash flow yield, cash flows to sales, cash flows to assets, and free cash flow. (Round computations to one...
Koz Corporation engaged in the transactions listed in the first column of the following table. Opposite each transaction is a ratio and space to indicate the effect of each transaction on the ratio....
Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the...
Key points on budgeting planning and spending from the finance point of view. A brief explanation of these points?
Strategy is developed across four different levels of an organization's hierarchy. What are those four levels and how do they differentiate from one another?

An important assumption of cost-volume-profit analysis is that a. both costs and revenues are linear functions. b.

Question:

Step by Step Answer:

Answer The right answer is e all of these are assumptio...View the full answer

Cornerstones of Managerial Accounting

Students also viewed these Business questions