Q6 Which of the following is the disadvantage ofusing FIFO method.a. The assumed flow of costscorresponds with the normalphysical flow of goodsb. It is easy to applyO c. No manipulation of income ispossibleO d. The recognition of paper profits

Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…

Answered: Which of the following is the…

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1DQ: Explain the meaning of (A) differential revenue, (B) differential cost, and (C) differential profit...

See similar textbooks

Similar questions

In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve crosses the x-axis.b. the area of profit is to the left of the break-even point.c. the area of loss cannot be determined.d. both the total revenue curve and the total cost curve appear.e. neither the total revenue curve nor the total cost curve appear.
In your own words explain the meaning of:a. differential revenue, b. differential cost, and c. differential income.
Which of the following statement is correct for relevant costs? a.It is avoidable, future and measured by cash b.It is avoidable, future and measured by profit c.It is unavoidable, future and measured by cash d.It is unavoidable, future and measured by profit
Wrong allocation of common costs lead to A. Inaccurate estimation of cost of products or services B. Under utilization of capacity C. Lower profit margin D. All of the above are correct
1.-Joint cost can be allocated using physical- measure-based data such as weights or volume. II.- Joint cost can be allocated using using market-based data such as revenues Both statements are false Both statements are true O Only statement II is true ) Only statement I is true
A Differential Revenues are the differences in revenues between any competing alternatives to the solution of a problem. 3. What are differential Revenues? k B. They are Costs that increase the revenue a Product Line. СА Any Revenue that increases when costs go down. D. A Revenue the moves in the opposite direction of a Cost.
Explain the Cost of Revenue vs. COGS.
Which of the following statements is false? Multiple Choice In general, the term expense is used for managerial purposes, while the term cost refers to external financial reports. An opportunity cost is the benefit forgone by selecting one alternative over another. An outlay cost is a past, present, or future cash outflow. A cost is a sacrifice of resources.
Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFO
True or false A cost center manager does not have the ability to produce revenue.
When contribution is positive but equal to fixed cost: a. There is loss less than fixed cost b. There is loss equal to fixed cost c. There is loss more than fixed cost d. There will be neither profit nor loss
Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs corresponds with the normal physical flow of goods b. It is easy to apply c. No manipulation of income is possible O d. The recognition of paper profits