analysis Which of the following is not considered in cost-volume-profit A. varia

Question

analysis Which of the following is not considered in cost-volume-profit A. variable costs B. fixed costs C. opportunity costs D. mixed costs Which of the following statements is correct? A. Total fixed costs are equal to revenue plus variable cost per unit times the B. C. quantity produced. Profit is equal to total fixed costs plus revenue. Total fixed costs are equal to profit minus revenue. D. Profit is equal to revenue minus total variable costs minus total fixed costs. The number of units that must be sold in order for a company to exactly cover its fixed and variable costs is the A. contribution margin. B. break-even point. C. relevant range. D. margin of safety. Mary's Manufacturing is operating at its break-even point of 10,000 units. Which of the following statements is not true? A. The amount of Mary's costs equals the amount of its revenues. B. Mary's fixed costs equal its variable costs. C. Mary's profit equals zero. D. Assuming no other changes, if Mary sold more units, it would earn a profit.

Explanation / Answer

1.

Result : (C)

Explanation :

Cost volume profit analysis is used to determine how changes in costs and volume affects company's operating income and net income. Assumptions are :

2.

Result : (D)

Explanation :

We know that ,

Profit = Total revenue - total cost .

Total cost = Total fixed costs + total variable costs

3.

Result : (B)

Explanation:

Break even point is the point where the company earns a zero profit. It is the point where revenue is equal to total costs.

4.

Result : (B)

Explanation:

Break even point is the point where company earns a zero profit. At this point total revenue is equal to total cost. Total cost= fixed costs+ variable costs.

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