Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis? 1) As...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis? 1) As long as the sales price per unit is greater than fixed costs per unit, net operating income will be positive. C 2) As long as variable costs are more than fixed costs, net operating income will be negative. (3) As long as the contribution margin is greater than fixed costs, net operating income will be positive. 4) As long as the contribution margin is a positive number, net operating income will be positive. Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis? 1) As long as the sales price per unit is greater than fixed costs per unit, net operating income will be positive. C 2) As long as variable costs are more than fixed costs, net operating income will be negative. (3) As long as the contribution margin is greater than fixed costs, net operating income will be positive. 4) As long as the contribution margin is a positive number, net operating income will be positive.
Expert Answer:
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date:
Students also viewed these accounting questions
-
Which of the following statements is true when a company is considering whether to make or buy a component of a product that it currently manufactures? a. If the current fixed overhead is avoidable...
-
Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a...
-
which of the following statements is true select one a. an employer cannot be held liable for a tort that an employee deliberately committed b. vicarious liability supports tort law's compensation...
-
The following sample data have been collected from two independent samples from two populations. Test the claim that the second population median will exceed the median of the first population. a....
-
Study the Excel regression output that follows. How many predictors are there? What is the equation of the regression model? Using the key statistics discussed in this chapter, discuss the strength...
-
Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2020, trial balance. Wilm's Window Washing Services Trial Balance...
-
Richmond Sporting Goods uses the LIFO inventory method and values its inven tory using the lower-of-cost-or-market (LCM) rule. Richmond Sporting Goods has the following account balances at May...
-
Multiple Choice Questions Select the best answer for each of the following and explain fully the reason for your selection. a. Which of the following is least likely to be among the auditors...
-
1. Duffer Resorts is redoing its golf course at a cost of $2,744,320. It expects to generate cash flows of $1,223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate...
-
Des Moines Power and Light has been collecting data on demand for electric power in its western subregion for only the past 2 years. Those data are shown in the table at the top of the shown below....
-
management predicts that 5,000 skis and 6.000 pounds of carbon fiber will be in inventory on June els S20 por curbon fiber can be purchased for $15 per pound, Each ski requires 0.5 hours of direct...
-
A central bank that decides the desired levels of interest rates and inflation and the horizon over which the inflation objective is to be achieved is most accurately described as being: A. target...
-
Is income from securities investments included in the operating revenue section? If not, why not?
-
According to the theory of money neutrality, money supply growth does not affect variables such as real output and employment in: A. the long run. B. the short run. C. the long run and the short run.
-
What is the difference between accounting and financial management?
-
Which is the most accurate statement regarding central banks and monetary policy? A. Central bank activities are typically intended to maintain price stability. B. Monetary policies work through the...
-
The five steps of strategic decision-making include all of the following steps except: Choose and implement the desired action. Continue an on-going evaluation of the problem. O Identify the...
-
Which of the following statements is false? a. Capital leases are not commonly reported in a Capital Projects Fund. b. A governmental entity may report a Capital Project Fund in one year but not the...
-
Ersheys Chocolates produces milk chocolate candy bars. The company currently uses a static budget process. The companys controller prepared the following budget for Octobers production: Estimated...
-
Discuss why financial budgets for merchandising companies are different from those for manufacturing companies.
-
The Hemp Division of West Company produces rope. One-third of the Hemp Divisions output is sold to the Hammock Products Division of West; the remainder is sold to outside customers. The Hemp...
-
Figure P18-39 shows two similar unit pulse waveforms. The only difference is that the first pulse is positive from \(-T / 2\) to \(T / 2\), while the second pulse goes from \(+\mathrm{A}\) to...
-
Describe the principal types of audits performed by independent auditors and indicate the established criteria and primary users of each tyr
-
Contrast the activities of independent, internal, and governmental auditors.
Study smarter with the SolutionInn App