Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 12Q
To determine
Whether all the costs of the company are variable because if a business concludes operations then their cost drops to zero
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Students have asked these similar questions
if costs are two high:
Select one:
a. Company loses work
b. Company loses money
C. It means error in estimation
d. All the above
Which of these costs is considered as the most important cost because if it is not met, an enterprise may fail to materialize.a. All of theseb. Increment costc. Fixed costd. First cost
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.
Chapter 11 Solutions
Survey Of Accounting
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- When companies consider outsourcing a product, fixed costs are always irrelevant. Question 31 options: True Falsearrow_forwardWhich of the following occurs if a company experiences a decrease in its fixed costs? Select one: O a. Income would decrease. O b. The break-even point would decrease. O c. The break-even point would increase. O d. More than one of the answers would occur. e. The contribution margin would decrease.arrow_forward“Management accounting deals only with costs.” Do you agree? Explain?arrow_forward
- Which is not true? At break-even point, A. profit equals zeroB. gross profit equals operating expensesC. contribution margin equals fixed costsD. total revenue equals total costsE. none of the above.arrow_forward“If a product line is generating a loss, then it should be discontinued.” Do you agree? Explain.arrow_forwardWhich of the following is not correct? At break-even A. Fixed costs equals contribution margin B. Profit equals zero C. Sales equal total costs D. Gross profit equals zeroarrow_forward
- 1)What is cost behavior analysis? and Why is cost behavior analysis important to management? 2)“Break-even analysis is of limited use to management because a company cannot survive by just breaking even.” Do you agree? Agree or not agree, please describe your line of reasoning.arrow_forwardWhen 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 lossarrow_forwardWhich of the following occurs if a company experiences a decrease in its fixed costs? Select one: a. More than one of the answers would occur. b. The break-even point would increase. c. The break-even point would decrease. d. The contribution margin would decrease. e. Income would decrease.arrow_forward
- A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.arrow_forward15. If the total contribution margin increases and fixed costs do not change, then net income can be expected to a. decrease by an equal amount. b. increase by an amount equal to the increase in contribution margin times the CM ratio. c. increase by an equal amount. d. none of these.arrow_forward4. A cost driver is: an indirect cost that is essential to the business. a factor that causes variations in a cost. the largest single category of cost in a company. a fixed cost that cannot be avoided.arrow_forward
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Relevant Costing Explained; Author: Kaplan UK;https://www.youtube.com/watch?v=hnsh3hlJAkI;License: Standard Youtube License