FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Which are formulas for ROI?
(check all that apply)
Sales-Profit Margin
Net Operating Income / Average Operating
Assets
Profit Margin x Inventory Turnover
Profit Margin x Asset Turnover
Net Operating Income - Average Operating
Assets
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- Describe the role of professional judgment in ethical leadership as it pertains to accountants and auditors.arrow_forwardCost-volume-profit-analysis can be used to determine expected income from predicted sales and cost levels True Falsearrow_forward1. Which of the following shows the degree of operating leverage? The percentage change in the sales volume as the result of the percentage change in cost of the goods sold The percentage change in the net income as the result of the percentage change in the variable costs The percentage change in the sales volume as the result of the percentage change in the sales price The percentage change in the net inome as the result of the percentage change in the sales volume The percentage change in the operating income as the result of the percentage change in the sales volumearrow_forward
- 1. Which of the following assumptions is false in a cost-volume-profit analysis? Total sales and total costs can be represented by straight lines. Within the relevant range of operating activity, the efficiency of operations does not change. Costs can be divided into fixed and variable components. There are changes in the inventory quantities during the period. 2. Which of the following charts plot only a profit line rather than sales and cost lines? Cost-volume-profit chart Profit-volume chart Profit-cost chart Cost-volume chartarrow_forward. A company can use cost-volume-profit analysis to determine the level of sales required to earn a target profit. TRUE OR FALSEarrow_forwardList and describe the components of Gross Domestic Product on the demand side. Be sure to account for the relative size of each component within the total GDP.arrow_forward
- Management uses Cost Volume Profit (CPV) analysis as a planning process to predict the future volume of activity, costs incurred, sales made and profit received. Required: i. List and explain FIVE assumptions in C-V-P analysis.arrow_forward(Multiple Choice) A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expensesarrow_forwardA multi- step income statement ___________. A. Seperates cost of goods sold from operating expenses. B. Considers imterest revenue an operating activity. C. Is another name for a simple income statement. D. Combines cost of goods sold and operating expenses.arrow_forward
- The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenuearrow_forwardChange in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?arrow_forwardContribution margin is Oa. profit Ob. the excess of sales over variable costs Oc. Oc. another term for volume in the "cost-volume-profit" analysis Od. the same as sales revenuearrow_forward
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