Operations Management: Budgeting - CPA Auditing and Attestation (AUD)
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Breakeven analysis assumes that over the relevant range:
Breakeven analysis assumes that over the relevant range:
Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.
Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.
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ABC company's breakeven point was \$780,000. Variable expenses averaged 60% of sales, and the margin of safety was \$130,000. What was ABC's contribution margin?
ABC company's breakeven point was \$780,000. Variable expenses averaged 60% of sales, and the margin of safety was \$130,000. What was ABC's contribution margin?
The margin of safety is the excess of sales over break-even sales. Assuming variable costs are 60% of selling price, contribution margin may be computed at 40% of selling price as 40% * $780,000 + 40% * $130,000.
The margin of safety is the excess of sales over break-even sales. Assuming variable costs are 60% of selling price, contribution margin may be computed at 40% of selling price as 40% * $780,000 + 40% * $130,000.
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A company has total sales of \$80,000, total variable costs of \$20,000, and total fixed costs of \$30,000. What is the breakeven level in sales dollars?
A company has total sales of \$80,000, total variable costs of \$20,000, and total fixed costs of \$30,000. What is the breakeven level in sales dollars?
The contribution margin is sales minus variable costs (80,000-20,000) = 60,000. Then, 60,000/80,000=75%. Then, breakeven is total fixed costs of $30,000/75%=$40,000.
The contribution margin is sales minus variable costs (80,000-20,000) = 60,000. Then, 60,000/80,000=75%. Then, breakeven is total fixed costs of $30,000/75%=$40,000.
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A product has sales of \$200,000, a contribution margin of 20%, and a margin of safety of \$80,000. What is the product's fixed cost?
A product has sales of \$200,000, a contribution margin of 20%, and a margin of safety of \$80,000. What is the product's fixed cost?
($200,000 - $80,000) * 20%
($200,000 - $80,000) * 20%
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What is the formula for breakeven point in units?
What is the formula for breakeven point in units?
This is the formula for breakeven point in units.
This is the formula for breakeven point in units.
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How does the margin of safety relate to breakeven in units or sales? It is:
How does the margin of safety relate to breakeven in units or sales? It is:
The margin of safety is generally expressed as either dollars or a percentage and is the excess of sales over breakeven sales.
The margin of safety is generally expressed as either dollars or a percentage and is the excess of sales over breakeven sales.
Compare your answer with the correct one above
Breakeven analysis assumes that over the relevant range:
Breakeven analysis assumes that over the relevant range:
Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.
Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.
Compare your answer with the correct one above
ABC company's breakeven point was \$780,000. Variable expenses averaged 60% of sales, and the margin of safety was \$130,000. What was ABC's contribution margin?
ABC company's breakeven point was \$780,000. Variable expenses averaged 60% of sales, and the margin of safety was \$130,000. What was ABC's contribution margin?
The margin of safety is the excess of sales over break-even sales. Assuming variable costs are 60% of selling price, contribution margin may be computed at 40% of selling price as 40% * $780,000 + 40% * $130,000.
The margin of safety is the excess of sales over break-even sales. Assuming variable costs are 60% of selling price, contribution margin may be computed at 40% of selling price as 40% * $780,000 + 40% * $130,000.
Compare your answer with the correct one above
A company has total sales of \$80,000, total variable costs of \$20,000, and total fixed costs of \$30,000. What is the breakeven level in sales dollars?
A company has total sales of \$80,000, total variable costs of \$20,000, and total fixed costs of \$30,000. What is the breakeven level in sales dollars?
The contribution margin is sales minus variable costs (80,000-20,000) = 60,000. Then, 60,000/80,000=75%. Then, breakeven is total fixed costs of $30,000/75%=$40,000.
The contribution margin is sales minus variable costs (80,000-20,000) = 60,000. Then, 60,000/80,000=75%. Then, breakeven is total fixed costs of $30,000/75%=$40,000.
Compare your answer with the correct one above
A product has sales of \$200,000, a contribution margin of 20%, and a margin of safety of \$80,000. What is the product's fixed cost?
A product has sales of \$200,000, a contribution margin of 20%, and a margin of safety of \$80,000. What is the product's fixed cost?
($200,000 - $80,000) * 20%
($200,000 - $80,000) * 20%
Compare your answer with the correct one above
What is the formula for breakeven point in units?
What is the formula for breakeven point in units?
This is the formula for breakeven point in units.
This is the formula for breakeven point in units.
Compare your answer with the correct one above
How does the margin of safety relate to breakeven in units or sales? It is:
How does the margin of safety relate to breakeven in units or sales? It is:
The margin of safety is generally expressed as either dollars or a percentage and is the excess of sales over breakeven sales.
The margin of safety is generally expressed as either dollars or a percentage and is the excess of sales over breakeven sales.
Compare your answer with the correct one above
How does the margin of safety relate to breakeven in units or sales? It is:
How does the margin of safety relate to breakeven in units or sales? It is:
The margin of safety is generally expressed as either dollars or a percentage and is the excess of sales over breakeven sales.
The margin of safety is generally expressed as either dollars or a percentage and is the excess of sales over breakeven sales.
Compare your answer with the correct one above
A product has sales of \$200,000, a contribution margin of 20%, and a margin of safety of \$80,000. What is the product's fixed cost?
A product has sales of \$200,000, a contribution margin of 20%, and a margin of safety of \$80,000. What is the product's fixed cost?
($200,000 - $80,000) * 20%
($200,000 - $80,000) * 20%
Compare your answer with the correct one above
What is the formula for breakeven point in units?
What is the formula for breakeven point in units?
This is the formula for breakeven point in units.
This is the formula for breakeven point in units.
Compare your answer with the correct one above
Breakeven analysis assumes that over the relevant range:
Breakeven analysis assumes that over the relevant range:
Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.
Breakeven analysis assumes that all variable costs and revenues are constant on a per-unit basis and are linear over a relevant range. Fixed costs in total are constant.
Compare your answer with the correct one above
ABC company's breakeven point was \$780,000. Variable expenses averaged 60% of sales, and the margin of safety was \$130,000. What was ABC's contribution margin?
ABC company's breakeven point was \$780,000. Variable expenses averaged 60% of sales, and the margin of safety was \$130,000. What was ABC's contribution margin?
The margin of safety is the excess of sales over break-even sales. Assuming variable costs are 60% of selling price, contribution margin may be computed at 40% of selling price as 40% * $780,000 + 40% * $130,000.
The margin of safety is the excess of sales over break-even sales. Assuming variable costs are 60% of selling price, contribution margin may be computed at 40% of selling price as 40% * $780,000 + 40% * $130,000.
Compare your answer with the correct one above
A company has total sales of \$80,000, total variable costs of \$20,000, and total fixed costs of \$30,000. What is the breakeven level in sales dollars?
A company has total sales of \$80,000, total variable costs of \$20,000, and total fixed costs of \$30,000. What is the breakeven level in sales dollars?
The contribution margin is sales minus variable costs (80,000-20,000) = 60,000. Then, 60,000/80,000=75%. Then, breakeven is total fixed costs of $30,000/75%=$40,000.
The contribution margin is sales minus variable costs (80,000-20,000) = 60,000. Then, 60,000/80,000=75%. Then, breakeven is total fixed costs of $30,000/75%=$40,000.
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Which of the following statements is true regarding opportunity cost?
Which of the following statements is true regarding opportunity cost?
Opportunity cost is the potential benefit lost by selecting a particular course of action. If idle space has no alternative use, there is no benefit foregone, opportunity cost is zero.
Opportunity cost is the potential benefit lost by selecting a particular course of action. If idle space has no alternative use, there is no benefit foregone, opportunity cost is zero.
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Costs relevant to a make or buy decision include variable labor and variable materials as well as:
Costs relevant to a make or buy decision include variable labor and variable materials as well as:
Avoidable fixed costs attach to a specific decision and are incurred only if that decision is taken. They are relevant in marginal analysis.
Avoidable fixed costs attach to a specific decision and are incurred only if that decision is taken. They are relevant in marginal analysis.
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