Which that the adhering to is an presumption underlying standard CVP analysis:A. In manufacturing companies, inventories constantly change.B. Fixed costs will adjust as volume increases.C. The price of a product or organization is meant to adjust as volume changes.D. In multiproduct companies, the sales mix is constant.

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There are miscellaneous budgets in ~ the master budget. Among these budgets is the manufacturing budget. Which of the following best describes the production budget? A. That is calculated based upon the sales budget and the desired ending inventory.B.It details the required raw products purchases.C. It summarizes the costs of producing units because that the budget period.D. That details the required straight labor hours.
Which the the adhering to statements is correct through regard come a CVP graph? A. A CVP graph mirrors the break-even suggest as the intersection that the complete sales revenue line and also the complete expense line.B. A CVP graph mirrors the maximum possible profit.C. A CVP graph assumes that total expense varies in direct proportion come unit sales.D. A CVP graph shows the operation leverage together the gap between total sales revenue and total price at the yes, really level that sales.
A. A CVP graph shows the break-even suggest as the intersection that the complete sales revenue line and the total expense line.
Net operating earnings computed under variable costing would exceed network operating revenue computed utilizing absorption costing if: A. Units offered exceed devices produced. B. Units sold are much less than units produced. C. Units offered equal devices produced. D. The mean fixed expense per unit is zero.
True or False: Differences between the revolution planning budget and the flexible budget show what should have actually happened due to the fact that the actual level of activity differed from what had actually been planned
A reason why absorption costing earnings statements space sometimes complicated to analyze is that:A. They omit variable costs entirely in computer net operation income.B. They include all fixed production overhead ~ above the revenue statement every year as a period cost.C. They overlook inventory levels in determining cost of goods sold.D. They transition portions the fixed manufacturing overhead from period to duration according to transforming levels of inventories.
D. They shift portions of fixed manufacturing overhead from duration to duration according to an altering levels that inventories
True or False:In a CVP graph, the anticipated benefit or ns at any given level the sales is measured by the upright distance in between the total revenue line (sales) and the complete fixed expense line.
True or False: Fixed expenses should not be ignored when assessing how fine a manager has controlled costs.
In its an initial year the operations, Bronfren Corporation developed 800,000 sets and sold 780,000 to adjust of synthetic tan lines. What would have actually happened to net operating earnings in this very first year under the complying with costing techniques if Bronfren had created 20,000 fewer sets? (Assume the Bronfren has actually both variable and fixed production costs.) change costing absorption costingA) No effect IncreaseB) diminish IncreaseC) to decrease DecreaseD) No effect Decrease
When utilizing a versatile budget, a to decrease in activity within the relevant range:A. Increases variable price per unit.B.decreases total costs.C. Reduce variable cost per unit.D. Increases full costs.
When sales exceed production and also the firm uses the LIFO inventory circulation assumption, the network operating earnings reported under change costing normally will be:
Which the the following may appear on a flexible spending plan performance report?A. Every one of the over may show up on a flexible spending plan performance report. B. Negative spending variance. C. Negative activity variance. D. A favorable revenue variance.
How would certainly the following prices be divide (product or period) under change costing at a retail apparel store?Cost that purchasing clothing Sales commissionsA) Product ProductB) Product PeriodC) duration ProductD) period Period
Mossfeet shoe Corporation is a single product firm. The company is predicting the a price boost next year will certainly not reason unit sales come decrease. What effect would this price increase have actually on the adhering to items for following year? ContributionMargin ratio Break-even PointA) increase DecreaseB) to decrease DecreaseC) increase No effectD) diminish No effect
True or False:An unfavorable task variance because that revenue suggests that task was less than expected as soon as the static planning spending plan was developed.
True or False:In the merchandise purchases budget, the forced purchases (in units) for a duration can be determined by subtracting the beginning merchandise list (in units) indigenous the budgeted sales (in units) and desired ending merchandise perform (in units).
Assuming that direct labor is a variable cost, the main difference in between the absorption and also variable costing is that:
variable costing treats only direct materials, direct labor, and the variable part of production overhead as product expenses while absorption costing treats direct materials, straight labor, the variable portion of production overhead, and also an allocated section of fixed manufacturing overhead together product costs.
Which the the adhering to statements is no correct concerning the manufacturing Overhead Budget?(1)The production Overhead spending plan is ready after the Sales Budget.(2)The production Overhead budget shows only the variable portion of manufacturing overhead.(3)The production Overhead budget shows the expected cash disbursements for manufacturing overhead.(4)The production Overhead budget plan provides a schedule of all prices of production other than direct materials and also labor costs
True or False:In a manufacturing budget, if the variety of units in finished items inventory in ~ the finish of the duration is less than the number of units in finished products inventory at the start of the period, then the expected variety of units offered is less than the number of units come be developed during the period.

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True or False:The straight labor budget starts with the forced production in systems from the manufacturing budget.

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