Question: 1a. Variable costs are always relevant, and fixed costs are always irrelevant. Do you agree? Why? Ib. In CVP analysis, gross margin is a less-useful

1a. "Variable costs are always relevant, and fixed costs are always irrelevant." Do you agree? Why? Ib. "In CVP analysis, gross margin is a less-useful concept than contribution margin." Do you agree? Explain briefly. 1c. "Budgeted performance is a better criterion than past performance for judging managers." Do you agree? Explain 1d. "A component part should be purchased whenever the purchase price is less than its total manufacturing cost per unit." Do you agree? Why? le. How can managers develop a flexible budget? What is variance? Is it useful for managers to preparing flexible budgets and identifying variances

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

01 (Answer any three) Points 12 1a. "Variable costs are always relevant, and fixed costs are always irrelevant." Do you agree? Why? lb. "In CVP analysis, gross margin is a less-useful concept than...

1. Segmented income statements are most meaningful to managers when they are prepared: A) on an absorption cost basis. B) on a cost behavior (contribution) basis. C) on a cash basis. D) in a...

Please comment on the post below Yes, I agree. In CVP analysis, gross margin is a less-useful concept than contribution margin. Because gross margin is the difference between the cost to produce or...

Indicate whether each of the following statements is true or false. a. Important qualitative considerations for a special order include all of the following: impact on current customers if they learn...

" In CVP analysis, gross margin is a less - useful concept than contribution margin." Do you agree? Explain briefly. A . No , gross margin calculations emphasize the distinction between fixed and...

In CVP analysis, gross margin is a less-useful concept than contribution margin." Do you agree? Explain. Q2: When might a company use budgeted costs rather than actual costs to compute direct-labor...

page number on bottom of page 2. On Page 36, under the section Break-Even Analysis", please calculate the breakeven point if the sales price increase by 50. Did the breakeven point increase or...

need project report on all CVP Analysis and Decision-Making Decision Matum Contribution is obtained from Product wYe. So, WYE should be manufactured by using sub coating facility as specified above....

Instructions ( a ) Compute break - even point in units using the mathematical equation. ( b ) Compute break - even point in dollars using the contribution margin ( CM ) ratio. ( c ) Compute the...

project note on all CVP Analysis and Decision-Making . Decision Maximum Contribution is owned from Product WYE. So, WYE should be manufactured by using sub- 36,000 11.14 Key Factor-Own Production vs...

Things That Ireland Is Famous For

If A and B are two independent events such that P(A) = 1/2 and P(B) = 1/5. Then, (a) P(AUB) = 3/5 (c) P(A/ AUB) = 5/6 (b) P(A/B) = 1/2 (d) P(AB)/(A'U B') = 0

To be effective, financial reports should be understandable, reliable, relevant, timely, consistent, and comparable. true or false

CT Corp Comprehensive Question Canadian Tire Corporation, Limited ( Canadian Tire ) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

List four examples of feedback you can give to a speaker that would indicate you understand his or her message. (Objective 4)

Teamwork. Conduct the following exercise with teams of five people. The instructor will read a factual story (from a newspaper, magazine, or other source) to one member of each team. That person will...

Good listeners can be described as patient and sincere; bad listeners can be described as self-centered and intolerant. What other words describe good listeners? bad listeners? List at least three...