ithin a budget and wants to determine which is more conomical. What is the differential cost of flying over driving?

Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear. Total fixed expenses are constant within the relevant range. Variable costs go down as volume goes up. The selling prices do not change. Volume is the only factor affecting total cost.

The major expenditures involved with buying a home include many things.  Describe the up-front costs? Identify the components of PITI.

Examples of opportunity costs include: not getting a high yield because you have set aside funds in a low risk investment. ☐not having as much money in savings because you purchased new appliances to save energy costs. trading in a large car with poor gas mileage for a smaller car that is fuel-efficient. delaying investment while waiting for the time value of money to increase the pay received. having enough money to save for retirement and to pay for current expenses.

Which of the following is a cost objective? Select one: O A. The cost of educating a student O B. The cost of constructing a house The cost of carrying a passenger O C. O D. All of the above.

Which one of the following statement is not correct? O Both fixed and variable costs influence short-term decision-making. O Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action. O Opportunity costs are only considered when resources are limited. O Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs.

When the level of activity decreases, variable cost will increase or decrease ?

1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the​ table:   a. What is the total contribution​ margin? b. What is the total variable​ expense? c. How many units were​ sold? d. What is the​ per-unit variable​ expense? e. What is the​ per-unit contribution​ margin? 2. Answer the following questions about breakeven​ analysis:   a. What is the breakeven point in​ units? b. What is the breakeven point in sales​ dollars? 3. Answer the following questions about target profit analysis and safety​ margin:   a. How many units must the company sell in order to earn a profit of $48,000​? b. What is the current margin of safety in​ units? c. What is the margin of safety in sales​ dollars? d. What is the margin of safety in​ percentage?

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

Describe the differences in behavior of fixed costs, variable costs, semi-variable costs and step costs. Then discuss how break-even analysis and contribution margin can be useful in making business decisions.