*************THIS IS ALL THE INFORMATION THAT IS AVAILABLE********** fixed cost.
ID: 2515468 • Letter: #
Question
*************THIS IS ALL THE INFORMATION THAT IS AVAILABLE**********
fixed cost.
variable cost.
profit or loss at that volume.
semivariable cost.
the safety margin.
Which of the following statements is (are) true regarding a company that has implemented flexible manufacturing systems and activity-based costing?
I. The company has erred, as these two practices used in conjunction with one another will severely limit the firm's ability to analyze costs over the relevant range.
II. Costs formerly viewed as fixed under traditional-costing systems may now be considered variable with respect to changes in cost drivers such as number of setups, number of material moves, and so forth.
III. As compared with the results obtained under a traditional-costing system, the concept of break-even analysis loses meaning.
Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?
Product prices will remain constant as volume varies within the relevant range.
Costs can be categorized as fixed, variable, or semivariable.
The efficiency and productivity of the production process and workers will change to reflect manufacturing advances.
Total fixed costs remain constant as activity changes.
Unit variable cost remains constant as activity changes.
9,565 units (rounded).
11,000 units (rounded).
7,586 units (rounded).
14,667 units (rounded).
None of the answers is correct.
fixed cost.
variable cost.
profit or loss at that volume.
semivariable cost.
the safety margin.
Which of the following statements is (are) true regarding a company that has implemented flexible manufacturing systems and activity-based costing?
I. The company has erred, as these two practices used in conjunction with one another will severely limit the firm's ability to analyze costs over the relevant range.
II. Costs formerly viewed as fixed under traditional-costing systems may now be considered variable with respect to changes in cost drivers such as number of setups, number of material moves, and so forth.
III. As compared with the results obtained under a traditional-costing system, the concept of break-even analysis loses meaning.
Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?
Product prices will remain constant as volume varies within the relevant range.
Costs can be categorized as fixed, variable, or semivariable.
The efficiency and productivity of the production process and workers will change to reflect manufacturing advances.
Total fixed costs remain constant as activity changes.
Unit variable cost remains constant as activity changes.
A recent income statement of Benton Corporation reported the following data:
If these data are based on the sale of 20,000 units, the break-even point would be:
9,565 units (rounded).
11,000 units (rounded).
7,586 units (rounded).
14,667 units (rounded).
None of the answers is correct.
Explanation / Answer
Solution for Ist Part:-
The vertical distance between the total cost line (Line B) and the total revenue line (Line A) represents:profit & Loss at the Volume.
Explantation: If revenue > Total cost, there is a net profit and if revenue < Total cost, there is a net loss. So if revenue line lies above (below) total cost line, the vertical distance is the net profit (net loss).
Note: As per Chegg Policy , Only first question can be solved , in case of multiple question.
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