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2 years ago

Why is cvp analysis more difficult when using absorption costing than when using variable costing?.

1 answer:

4 0

CVP analysis is more difficult because its requires costs to be broken down between variable and fixed which is not done in absorption costing.

<h3>What is a CVP analysis?</h3>

This is an analysis that find out how changes in the firm's variable and fixed costs affect the firm's profit.

Hence, the analysis is difficult when using absorption costing than when using variable costing because its requires costs to be broken down between variable and fixed which is not done in absorption costing.

You might be interested in

Which market is most likely to be characterized by oligopolistic competition in the united states?

k0ka [10]

The market most likely to be characterized by oligopolistic competition in the united states is smartphone service providers.

<h3>What is an oligopolistic competition ?</h3>

An oligopoly is when there are few large firms operating in an industry. This is because there are high barriers to the entry and exit of firms into the industry. The smartphone service provider industry is dominated by five industries due to the high cost and regulations in the industry.

Here are the options to the question:

a) soybeans

b) pens and pencils

c) smartphone service providers

d) men's clothing

e) electrical service to the home

To learn more about oligopolies, please check: brainly.com/question/26130879

#SPJ1

3 0

1 year ago

Forey, Inc. competes against many other firms in a highly competitive industry. Over the last decade, several firms have entered

crimeas [40]

Answer:

The market that characterizes the industry in which Forey competes is a market where competition is at its greatest possible level and it is a perfectly competitive market and the reason is because its returns decrease with the entering of new firms, also four-firm concentration ratio and Herfindahl Hirschman index are both quite small, so no one has significant market power to set or even influence the market price. In the short-run Forey Inc’s profit will decrease as more and more new firms enter the market and in the long-run Forey Inc will receive only normal (zero) economic profit.

4 0

3 years ago

Proprietary and fiduciary funds follow account and reporting principles similar to those of ______ organizations.

suter [353]

City of New York

Hope this helps (:

8 0

1 year ago

The management of Heider Corporation is considering dropping product J14V. Data from the company's accounting system appear belo

zmey [24]

Answer:

Overall net operating income would decrease by $135,000

Explanation:

Calculation for What would be the effect on the company's overall net operating income if product J14V were dropped

Keep J14V Drop J14VDifference

Sales$980,000 $ 0 $(980,000)

Variable expenses

$394,000 $0 $394,000

Contribution margin

$586,000 $0 $(586,000)

Fixed expenses:

Fixed manufacturingexpenses

$376,000 $131,000 $245,000

($376,000-$245,000=$131,000)

Fixed selling and administrative expenses

$256,000 $50,000 $206,000

($256,000-$206,000=$50,000)

Net operating income(loss)

$(46,000) $(181,000) $(135,000)

Net operating income would decline by $135,000

Therefore the Overall net operating income would decrease by $135,000.

8 0

3 years ago

a college in a metropolitan area wishes to increase its evening offerings of business-related courses such as marketing, account

SSSSS [86.1K]

Answer:

Target markets are management and business students looking forward for employment and full year courses.

Explanation:

The target market can be those who are working full time in the day and may also include the small and medium business owners that intend to provide some sort of online cloud computing set up for the college, and

It may be the students that want to continue their higher education and pursuing a full degree. These may also include the off-campus students that are interested in doing professional courses.

5 0

3 years ago