Answered: Increases in holding cost ________…

Business

Accounting

Increases in holding cost ________ reorder points. Group of answer choices Decrease Have no effect on Increas

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 12E

See similar textbooks

Related questions

Q: When should a segment be dropped? only when the decrease in total contribution margin is less…

Q: Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping…

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Q: The adjustment of underapplied manufacturing overhead cost results in: O a. decrease in cost of…

Q: Choose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit…

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

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: Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed…

A: Variable Cost change with level of activity Fixed Costs per unit changes when the level of activity…

Q: The adjustment of underapplied manufacturing overhead cost results in: O a. decrease in net…

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

Q: Which of the following is not a reason for stockpiling? Lūtfen birini seçin: a. Minimize holding…

A: Stock piling refers to the process of keeping inventory in bulk. It is an attempt to produce at…

Q: Which of the following statements is NOT true about costs per unit within the relevant range?…

A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

Q: When risk of measurement error increases in using ABC Select one: O a. a & b O b. When costs are…

A: The question is multiple choice question and related to Activity Based Costing. Required Choose the…

Q: When inventories are decreasing, _________ costing will lead to lower profits because…

A: When inventories are decreasing, absorption costing will lead to lower profits because capitalized…

Q: The adjustment of overapplied manufacturing overhead cost results in: а. none of the given answers O…

A: When overhead is overapplied to inventory, more overhead is accumulated than is currently incurred.…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: Which condition would cause absorption-costing net income to be lower than variable-costing net…

A: Solution: "Units sold exceeded units produced" would cause absorption-costing net income to be lower…

Q: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…

Q: An increase in variable costs [A] increases p/v ratio [B] increases the profit [C] reduces…

A: Contribution Margin = Sales – Variable costs P/V ratio = Contribution/Sales Margin of Safety in…

Q: A negative trend in Gross Margin may indicate that Cost of Sales is decreasing. Group of answer…

A: Introduction: Formula: Gross margin = sales - cost of goods sold. Deduction of cost of goods sold…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: tiveness analysis (CEA) differs from cost-beneﬁt (B/C) analysis in that: Select one: a. CEA is more…

A: Cost effective analysis : A cost-effectiveness analysis looks at both the expenditures as well as…

Q: S1: Abnormal spoilage is considered a period cost. S2: Backflush costing requires fewer allocations…

A: Product costs are direct costs incurred in producing the product and can be directly allocated to…

Q: Consider the following slide: Question 4-1.png On this slide: Group of answer choices Sales,…

A: The variance is the difference between the actual data and standard output of the production. The…

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

Q: Product costs under variable costing are typically: Question 1 options: lower than under…

A: As per the variable costing method, only variable cost is considered as the product cost while in…

Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: An increase (decrease) in cost of sales due to volume of *

A: Cost of Sales Cost of sales which is described as the cost which are incurred at the time of sales…

Q: Wrong allocation of common costs lead to A. Inaccurate estimation of cost of products or…

A: Common costs are those costs that are incurred for two or more products simultaneously. Common costs…

Q: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…

Q: Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write…

A: Selling price and sales volume have a direct relationship with the Gross profit i.e. increase in…

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

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

Q: When the level of activity increases, total fixed costs a. decrease. b. remain the same. c.…

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

Q: Within the relevant range, the change in activity level will result in a. A change in both of…

A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…

Q: Variable costs are costs that: a) Vary inversely proportional with changes in activity b) Remain…

A: Total variable costs increase with the increase in activity and decrease with the decrease in…

Q: Show how each of these costs will behave as the volume of activity decreases.…

A: The volume of activity directly impacts the variable cost because the variable cost changes directly…

Q: Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain…

A: Variable cost : Variable costs are constant per unit and change in total while fixed costs always…

Q: When should a segment be dropped?

A: Any Segment will be dropped only when there is increase in the Net operating income after the…

Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…

A: The total cost of a product can be variable or fixed cost.

Q: loss ( n.l. ) increase the cost . * true fales

A: The net loss means when the expenses are greater than the revenue it will results in a loss. It is…

Q: get costing is reversal of: a. Marginal cost b. Skimming pricing c. Penetrating pricing d. Cost plus…

A: Solution: Target costing is reversal of Cost plus model. This is because under target costing cost…

Q: When production exceeds sales, a. Ending inventory under variable costing will exceed ending…

A: Option no. (b) is correct.

Q: On the costvolume - profit graph which of the following would result into a decrease in the…

A: Answer

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: Which decision will involve no incremental revenues?

A: Answer: Make or buy decision.

Question

Increases in holding cost ________ reorder points.

Group of answer choices

Decrease

Have no effect on

Increase

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When risk of measurement error increases in using ABC Select one: O a. a & b O b. When costs are allocated instead of being traced to ABC cost pool O C. All of the above O d. When uncertainties exist about activity O e. When number of ABC cost pools decreases
Optimal replacement interval is negatively correlated with which of the following? a. First cost b. Operating and maintenance cost c. MARR d. None of the above.
Direct lobour cost always be variable is_______ system
Suppose that Target uses FIFO costing method but decided to change to the LIFOmethod. What are the steps Target would take to account for and report the change?
Costs that will differ between alternatives and influence the outcome of a decision ar Select one: O a. Relevant costs. O b. Sunk costs. O c. Product costs. O d. Period costs. e. None of the answers are correct
Indicate how the internal rate of return is calculated using the factor. (answer is in % format) Please don't give solution in an image format thank u
View Policies Current Attempt in Progress Variable costs O vary in total as activity varies. O vary on a per unit basis as activity varies. O are unpredictable. O none of the above. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Which of these statements is incorrect: A. Contango occurs when the Basis, Pf – Ps is positive. B. Backwardation occurs when Ps > Pf. C. The basis is the cost of carry. D. Backwardation occurs when carrying will incur a net cost.
Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment? A. comparing contribution margins and fixed costs B. comparing contribution margins and variable costs C. comparing gross margin and variable costs D. comparing total contribution margin under each alternative
Metrics that are early in the value chain are normally considered to be _____ indicators. a.value chain b.leading c.reciprocal d.lagging
________ are the costs associated with not choosing the other alternative.A. Sunk costsB. Opportunity costsC. Differential costsD. Avoidable costs
loss ( n.l. ) increase the cost . * true fales