Computation of absorption costing gross profit

Assignment Help Business Management

Reference no: EM1333310

Q1) What role does a trade in allowance on old equipment play in a decision to retain or replace equipment?

A) it relevant since it increases the cost of the new equipment
B) It is not relevant since it reduces the cost of old equipment
C) it is not relevant to the decision since it does not impact the cost of the new equipment
D) it is relevant since it reduces the cost of the new equipment

Q2) Which one of the following is possible if Hollywood video cuts its DVD rental rates by 20%?

A) its fixed costs will decrease
B) its profit will decrease by 20%
C) total costs increase
D) a profit can be earned by increasing the number of videos returned.

Q3) Which of the following is a consideration of CVP analysis?

A) the level of activity must remain constant over the relevant range
B) the total fixed costs remain constant over the relevant range
C) total variable cost remain constant over the relevant range
D) cost behavior can change as long as total cost remain the same at all activity levels.

Q4) The computation of absorption costing gross profit always involves subtracting

A) all current year fixed manufacturing overhead
B) some but not all current year fixed manufacturing overhead
C) all fixed manufacturing overhead applied to units sold in the current year
D) no fixed manufacturing overhead.

Reference no: EM1333310

Questions Cloud

Intersecting indifference curves : Intersecting indifference curves would reflect a violation of the more is better principle.

Recovering from service failure : Recovering from a service failure requires different strategies and methods for hotel serving business travellers than for restaurant serving family dinners. State whether you agree or disagree.

Explain nsight into lack of security features : Explain Nsight into lack of security features or enhanced protocols and The architects of the new Internet Protocol address structure

Develop a human resource department : Develop a Human Resource Department for Titan Company -Can you help me to develop/write (the below 6 titles) a Human Resources department according to the data below

Computation of absorption costing gross profit : The computation of absorption costing gross profit always involves subtracting.

Finding examples for mode : What examples can you find for mode?

Write down the sql command to add math scope : Write down the SQL command to add SUBJECT to TUTOR. The only values allowed for SUBJECT will be "Reading", "Math", and "ESL".

Discussing uniform commercial code : What is the purpose of the Uniform Commercial Code (UCC)? What types of transactions are covered by the UCC?

Find out all doctors who went to harvard : Did the SQL programmer enforce the constraint that every doctor practices in a unique hospital? If so, how? If not, how do you know, and how, if at all, might this constraint have been implemented.

User Account

All Pages