Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs are linear b. Sales mix of products sold does not change c. Selling price per unit changes with volume d. Costs can be divided into variable and fixed components e. Fixed cost per unit is not constant

Variable costing income will be greater than absorption costing income when:   a. Sales is greater than production.   b. contribution pricing is applied   c. Production is less than or equal to sales.   d. Production is greater than sales

(Variable cost = Total cost - Fixed cost - Net profit) you have not consider the net profit in the calculation. I think it should be added right ?

Consider the following two statements concerning cost-volume-profit analysis. (1) The contribution per unit is the difference between the sales price per unit and the fixed costs per unit. (2) The marginal cost per unit will usually equal the variable cost per unit. Which one of the following combinations ( true/false) relating to the above statements is correct?

For each situation, list the assumption, principle, or constraint that has been violated, if any. List only one answer for each situation. a.   East Lake Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.   choose one of the assumption, principle or constraint                                                           Going concern assumptionPeriodicity assumptionNo violationHistorical cost principleRevenue recognition principleEconomic entity assumption b.   Hilo Company is in its fifth year of operation and has yet to issue financial statements. (Do not use the full disclosure principle.)   choose one of the assumption, principle or constraint                                                           Historical cost principleGoing concern assumptionRevenue recognition principleNo violationPeriodicity assumptionEconomic entity assumption c.   Gomez, Inc. is…

Cost of goods sold divided by variable cost equals units. O True False

Operating leverage measures the: O Change in profit when sales changes. O Change in Contibution when sales changes. O Change in BEP when fixed cost changes. O Change in BEP when sales changes.

7. Which of the following is the best definition of a variable cost? A. A variable cost is one which is directly traceable to an activity of the business for which the cost will be used. B. A variable cost is one which is associated with goods or services purchased, or produced, for sale to customers. C. A variable cost is one which changes with changes in the level of activity, over a defined period of time. D. A variable cost is one which is spread over a number of activities of the business for which costs are to be determined.

Which of the following statements correctly complete the sentence:"Gross Margin equals":I.   sales revenue less (minus) cost of goods sold.II.  contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV.  sales revenue less (minus) cost of goods manufactured.

Which of the following does not represent a cost -volume -profit analysis equation a. Sales = totale expenses + profit b. Sales + fixed expenses profit = contribi argin + sales c. Profit = contrib contribution margin - fixed expenses d. Contribution margin- fixed expenses - profit 0 e. Sales - fixed expenses - variable expenses ses = 0