)high total costs per unit. high fixed costs in its production process. ) high variable costs in its production process. low total costs per unit. low fixed costs in its production process.
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Q: ?Which of the following statements is false Activity-based costing typically provides less…
A: In order to solve in this question, we need to analyse the given statement one-by-one.
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Q: When making outsourcing decisions, which of the following is true? The expected use of the freed…
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A: Break Even point is a level where Profit is Zero
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Q: Which of the following statements is true? O a. Activity-based costing typically provides less…
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Q: The direct costs of materials that change with the number of units produced is an example of a fixed…
A: False, the direct cost of materials is not an example of fixed production cost because it is a…
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A: Decrease in material cost result in Decrease in variable cost
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Q: When units produced are less than units sold, income under absorption costing is higher than income…
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Q: Variable costs are the costs remain constant in 'total" amount over a wide range of activity for a…
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A: Marginal cost is the cost incurred to produce additional unit or to render additional service.
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- When constrained by a limiting resource, managers often seek to produce those products which have: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.Variable costs within the relevant range for a firm are assumed: A. Not to vary per unit. B. Not to vary in total. C. To be nonlinear (i.e. not a straight line when graphed). D. To be unpredictable.Compared to companies that have a cost structure that is mainly comprised of fixed costs, companies with a cost structure that is mainly comprised of variable costs would: O a. Be vulnerable to adverse effects of economic downturn O b. Have low operating leverage Oc. Be able to enhance their profits at a higher degree on O d. Be considered more risky
- In general, a firm with low operating leverage also has a small proportion of its total costs in the form of variable costs. T/F True FalseWhen operating in a constrained environment, which products should be produced? A. products with the highest contribution margin per unit B. products with the highest contribution margin per unit of the constrained process C. products with the highest selling price D. products with the lowest allocated joint costA very high degree of operating leverage (DOL) indicates that a firm: A. has high fixed costs.B. has a high net income.C. has high variable costs.D. is operating close to its breakeven point.
- Compared to companies that have a cost structure that is mainly comprised of variable costs, companies with a cost :structure that is mainly comprised of fixed costs would Have limited ability to enhance their profits at a higher degree a O Have low operating leverage b O Be less vulnerable to adverse effects of economic downturn cO Be considered more risky .d OWhich of the following statements accurately describes the "relevant range?" a. The operation range in which fixed costs are expected to remain the same. b. The operation range in which the firm can earn a profit. c. The operation range which can satisfy unusual product demand. d. The operation range in which variable costs rise proportionately.When constrained by a limiting resource, managers often seek to produce those products which have: Question options: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.
- Which of the following statements is/are true regarding the impact of a company's cost structure? Cost structure can have a significant impact on a company's profitability By outsourcing production, companies generally reduce fixed costs, which will impact their cost structure A higher contribution margin ratio indicates a larger reliance on fixed costs relative to variable costs Companies with a greater reliance on variable costs will have a higher margin of safety ratio All of the above statements are trueWhich of the following statements about operating leverage is NOT true? Group of answer choices Operating leverage predicts the effect of fixed costs on operating income when sales volume changes. A higher proportion of fixed cost in a cost structure results in higher operating leverage. The higher the operating leverage, the higher the risk of loss when sales volume decreases. A higher proportion of fixed cost in a cost structure results in lower operating leverage.The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding costs and selling price. Which one of the following is NOT one of those assumptions: a. The selling price per unit will remain unchanged. b. Fixed costs per unit will decrease. c. The costs can be expressed as straight lines in a BEP (Break-even-point) graph. d. The actual variable costs per unit vary over the production range.
