If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the EOQ change? How sensitive is the EOQ to variations in demand or costs?

Q: Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs…

A: CVP Chart:   Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: Fixed costs are costs that do not change with change in level of activity. Variable costs are costs…

Q: What effect does an increase in volume have on—b. Unit variable costs?

A: Variable cost: Variable costs are the total costs that changes with the change in level of activity.…

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: Which of the following is not an assumption of the basiceconomic-order quantity model?A. quantity…

A: Economic order quantity or EOQ model is the equation that helps compute order quantity of inventory…

Q: What effect does an increase in volume have on: Unit fixed costs? Unit variable costs? Total…

A: Increase in volume simply means the increase in production level.

Q: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…

A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will:…

A: Variable Cost refers to those Cost which are Variable on nature that means they are changed with the…

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

A:

Q: When variable costs increase and all other variables remain unchanged, the break-even point will…

A: The break even point is incurred when all the costs are covered by the sales and there is no profit…

Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…

A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: A decrease in production will result in an increase in Total Variable Cost True False

A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…

Q: “Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of…

A: Indirect cost pool refers to the accumulated cost that jointly benefits two or more costs…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…

A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…

Q: Which of the following statements regarding price elasticity is incorrect? a. A product with a…

A: a) In a perfectly inelastic demand the consumers are willing to pay any price for the product and so…

Q: What do you mean when you say "fixed costs"? What's the point? Is it possible to have a combined…

A: Introduction: Costs are the costs that a company incurs when it is in operation. It includes the…

Q: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…

A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…

Q: At the breakeven point Select one: O a. Sales will be equal to variable costs plus fixed costs b.…

A: Formula: Break even point in units = Fixed costs / contribution margin Contribution margin means…

Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…

A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: The break-even point is that level of activity where: Select one: a. sales revenue equals fixed…

A: Break Even point is a level where Profit is Zero

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?…

A: FIFO method is First in First out method in which inventory which is purchased first will be sold…

Q: The aggregate demand curve shifts to the right when *

A: The market works based on the demand and supply. The prices in the market fluctuates because of this…

Q: If total fixed costs increase, while selling price per unit and variable cost per unit remain the…

A: Break even point = fixed cost / ( sales price per unit -variable cost per unit if fixed cost…

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: Holding all other factors constant, the break-even point will be decreased by increasing the fixed…

A: The correct answer is Option C.

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1   Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: In the economic order quantity (EOQ) model, where does the optimal order quantity value exist? O…

A: Economic order quantity is the quantity that is best for the business. It shows the quantity where…

Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: In order to draw a basic break-even chart, which of the following information would you not require?…

A: The break even sales are the sales where business earns no profit no loss during the period.  The…

Q: Give an example how manager can decrease variable cost while increasing fixed cost

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…

A: In the question we are required to identify the effect of increase in activity on Total Variable…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: What effect does an increase in volume have on—d. Total variable costs?

A:

Q: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…

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

A: Option b is correct.

Q: Explain the behavioral problem that can result when cost-plus prices are based on variable cost.

A: Following is the answer to the given question

Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…

A: Break even point can be referred to as a sales level at which the firm is just able to recover all…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.