Which of the following is not another way of describing the marginal propensity to consume? a. autonomous consumption spending b. the slope of the consumption function c. the amount by which real consumption spending rises when real disposable income increases by one dollar d. MPC e. the change in real consumption spending divided by the change in real disposable income

Q: Why do better decisions regarding the purchasing and managing of goods for sale frequently cause…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Sales…

A: Cost volume profit analysis enables the management in determining the relation of costs and revenues…

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: 1. When applying lower of cost or market, market value A. is defined as the selling price B.…

A: This Net realizable value(NRV) generally a common method used in valuation of an asset in inventory…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a.…

A:

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…

A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…

Q: Which method results in a more realistic amount for income because it matches the most current costs…

A: The current costs is based on the purchasing of the latest products which means the having book…

Q: 21. If variable selling and administrative costs increased, how would the gross margin and…

A: Variable selling and administrative costs are those selling and admin costs which will be changed…

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…

A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the…

Q: Which of the following will result in the increasing the break-even point? O A decrease in the…

A: Break-even point = Fixed costs / Contribution per unit Contribution per unit = Selling price per…

Q: Which of the following is not a correct definition of the breakeven point? A.the point where total…

A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…

Q: When selling price is constant and variable costs increases. What will be the effect to the net…

A: In the given example, it is assume that selling price is constant in both the cases and variable…

Q: As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or…

A:

Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…

A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…

Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can…

A: The question is multiple choice question. The question is related to Marginal Costing and is of cost…

Q: Contribution is the difference between sales and the marginal (variable) cost of sales

A: Contribution = Sales - Variable cost

Q: In a period of rising prices, FIFO will result in O lower net income than LIFO. lower net purchases…

A: Inventory valuation is the process by which the inventory of the entity is valued. It can be done…

Q: Which of the following is an opportunity cost? marginal cost cost of sales O lost sales cost of…

A: Introduction: Opportunity cost: Cost for the opportunity lost called Opportunity cost.

Q: Income taxes have the following effect on the breakeven point calculation:   Multiple Choice   They…

A: While calculating the breakeven point, fixed cost and contribution margin is being considered and…

Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: Which of the following choices denotes the typical cost behavior of advertising and sales…

A: Introduction: Fixed cost: The type of cost is fixed. It remains fixed irrespective of volume…

Q: A market demand function is given by the equation QD = 180 – 2P. Find the value of consumer surplus…

A: Consumer surplus is measure by the area of triangle enclosed by the price line, y-axis and the…

Q: What is the reason that makes gross profit margin increases and decreases?

A: The gross profit margin is calculated by deducting the cost of goods sold from the sales revenue and…

Q: ?Which of the following statements about margin of safety is false .Margin of safety measures the…

A: The MOS is the difference between the budgeted sales or actual sales and the break-even sales. It…

Q: Why is the calculation to determine the target profit considered a variation of the break even…

A: Target Profit:   It is the desired amount of profit that a company expects to achieve by the end of…

Q: Distinguish between the downward demand spiral and the ramifications of this for price choices

A: This question tells about  the downward demand spiral and the ramifications of this for price…

Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…

A: Margin of safety ratio = Profit ratio / Contribution margin ratio

Q: what is that portion of income which is not spent on consumption   A leakage An injection…

A: Introduction:- Income means sum of money received from earned from doing work or received from…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment is a simple ratio of the gain from an investment relative to the amount…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: Give the solution: How much is the total cost of goods sold?

A: For an investor or other stakeholders, income statement or statement of profit or loss is an…

Q: if we produce goods over the capacity, should we consider the fixed marketing cost and variable…

A: Fixed marketing costs is fixed costs related with the marketing of the product and this will not be…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…

Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…

A: Breakeven quantity increases with the following changes:  Increase in amount of fixed costs,…

Q: The variable cost ratio represents  The proportion of variable costs in relation to net income The…

A: Solution : The variable cost ratio represents  Correct answer is Option 3 . The proportion of…

Q: Which of the followings is NOT an advantage of financial institutions in consumption smoothing? A.…

A: Financial Institutions Institutions involved in financial transactions such as lending and borrowing…

Q: Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability of…

Q: When applying lower of cost or net realizable value under the FIFO, average cost, or specific…

A: The lower of cost or net realizable value method says we should record the inventory at market price…

Q: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Option b is correct.