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.

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

A:

Q: variable

A: Performance evaluation based on income could be best achieved by using variable costing method in…

Q: Which of the following is false regarding activity-based costing (ABC)?      a. Companies that have…

A: Activity based costing is a type and method of costing methodology, in which all indirect costs or…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: “Management should always maximize sales of the product with the highest contribution margin per…

A: Yes, the given statement is correct.

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due…

Q: ent should focus its sales and production efforts on the product or products that will provide the…

A:

Q: If the units produced exceed the units sold, which method would you expect to show the higher net…

A: Variable Costing: Variable Costing takes into account only variable manufacturing costs for…

Q: . What is the difference between variable and fixed costs? Also explain how the total variable cost…

A: " Since you have posted more than two questions and not specified which should be solved so we are…

Q: Which of the following is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: Give an example of how a manager can decrease variable costs while increasing fixed costs?

A: Variable Cost: Variable costs are costs which are directly vary with the change in production.…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: Absorption costing is the method used by the managers to determine the cost connected with the…

Q: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…

A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…

Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…

A: Variable costs: These are the costs that proportionately change with the changes in the activity…

Q: Select the correct statement concerning the cost-volume-profit graph at right:   At point B, profits…

A: In order to determine the Breakeven point (units), the total fixed cost is required to be divided by…

Q: If the units produced exceed unit sales, which method would you expect to show the higher…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…

A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…

Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…

A: Marginal cost refers to the additional cost.

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

Q: CVP analysis using activity-based costs will tend to shift some costs from fixed to variable…

A: CVP Analysis:   CVP analysis establishes the relation between cost, volume and profit of the…

Q: When pricing a product or service, managers must consider which of the following? Only period costs…

A: Pricing a product is considered as one of the marketing strategy.

Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…

A: Variable cost is the cost incurred during the production of units which will be directly…

Q: Managers often assume a strictly linear relationship between cost and volume. How can thispractice…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opprtunity cost should be consider while accepting special order. As order is received at full…

Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: What is the reason for pooling costs? O a. To shift costs from low-volume to high-volume products. O…

A: Cost mean different expenses incurred by the manufacturing concern to make a product available to…

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

A: Constraint: Constraint is a factor that limits the production of a product or sale of a product.

Q: Is activity-based costing always beneficial to an organization? in what situations would itb…

A: Activity based costing is a system of costing in which  allocated on the basis of activity done .it…

Q: What is the high-low method used to estimate? a. variable costs and production capacity b. total…

A: The high-low method is a method using which the variable cost per unit and total fixed cost is…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.

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 cost behavior assumptions is false? * a. Variable costs are constant if…

A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…

Q: 1- What potential problems should be avoided in relevant-cost analysis?

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

Q: Which one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…

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

Q: Why do product costing systems using a single, volume-based cost driver tend to overcost highvolume…

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

Q: Why do product-costing systems based on a single, volume-based cost driver tend to over-cost…

A: Single volume-based cost driver means the basis of allocation of costs to particular products using…

Q: Give an example of how a manager can increase variable costs while decreasing fixed costs?

A: Fixed costs refers to those which do not change according to the change in units of productions.…

Q: Give an example how a manager can increase variable cost while decreasing fixed costs

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

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Under the variable costing system, the product cost includes direct material, direct labor, direct…

Q: Profitability changes may be simply calculated by using what kind of tool: sales…

A: The net profits are calculated as difference between sales and total expenses.

Q: What is happening to average costs when marginal cost is greater than average cost at a specific…

A: When marginal cost is greater than average cost (including average variable cost or average total…

Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: Variable cost is that cost that varies with the number of units produced. It means that increase in…

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: 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: 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: Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable…

A: -Variable cost refers to an expenditure that varies in gross dollar value as the degree of…