Which of the following is not an underlying assumption of cost-volume-profit analysis? quizlet

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Which of the following is not an underlying assumption of cost volume profit analysis?
Which of the following is an underlying assumption of cost volume profit analysis?
Which of the following is an assumption of CVP analysis quizlet?
Which of the following is not an underlying assumption of break even analysis?

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Which of the following costs are variable?
Cost 10,000 Units 30,000 Units
1. $100,000 $300,000
2. 40,000 240,000
3. 90,000 90,000
4. 50,000 150,000
a. 1 and 2
b. 1 and 4
c. only 1
d. only 2

Frazier Manufacturing Company collected the following production data for the past month:
Units Produced Total Cost
1,600 $44,000
1,300 38,000
1,500 45,000
1,100 33,000
If the high-low method is used, what is the monthly total cost equation?
a. Total cost = $8,800 + $22/unit
b. Total cost = $11,000 + $20/unit
c. Total cost = $0 + $30/unit
d. Total cost = $6,600 + $24/unit

At the high level of activity in November, 7,000 machine hours were run and power costs were $16,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $8,000. Using the high-low method, the estimated fixed cost element of power costs is
a. $16,000.
b. $8,000.
c. $4,800.
d. $11,200.

Gribble Company's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $104,000 in May and $40,000 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.
a. $90,000
b. $96,000
c. $78,000
d. $80,000

In applying the high-low method, what is the fixed cost?

Month Miles Total Cost
January 80,000 $144,000
February 50,000 120,000
March 70,000 141,000
April 90,000 195,000

a. $26,250
b. $54,000
c. $21,000
d. $75,000

Ponszko Nursery used high-low data from June and July to determine its variable cost of $18 per unit. Additional information follows:
Month Units produced Total costs
June 2,000 $48,000
July 1,000 30,000
If Ponszko's produces 2,300 units in August, how much is its total cost expected to be?
a. $12,000
b. $59,400
c. $41,400
d. $53,400

A division sold 100,000 calculators during 2013:
Sales $2,000,000
Variable costs:
Materials $380,000
Order processing 150,000
Billing labor 110,000
Selling expenses 60,000
Total variable costs 700,000
Fixed costs 1,000,000
How much is the contribution margin per unit?
a. $2
b. $7
c. $17
d. $13

Which of the following is not an underlying assumption of cost volume profit analysis?

Answer and Explanation: CVP analysis makes no assumptions related to beginning inventory and ending inventory. Since CVP is applied when using the variable costing model the change in inventory is not factored into the financials and thus is not an underlying assumption. The other options are assumptions.

Which of the following is an underlying assumption of cost volume profit analysis?

The assumptions underlying CVP analysis are: The behavior of both costs and revenues is linear throughout the relevant range of activity. (This assumption precludes the concept of volume discounts on either purchased materials or sales.) Costs can be classified accurately as either fixed or variable.

Which of the following is an assumption of CVP analysis quizlet?

Which of the following is an assumption of CVP analysis? Total cost can be divided into a fixed component and a component that is variable with respect to the level of output.