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Dimas [21]
3 years ago
9

CVP analysis assumes all of the following except:Variable costs are linear through the relevant rangeRevenues are linear through

out the relevant rangeInventory levels will increaseA change in volume is the only factor that affect costs
Business
1 answer:
son4ous [18]3 years ago
5 0

Answer:

Inventory levels will increase

Explanation:

CVP stands for cost volume profit analysis, under this analysis, there is basic assumption with respect to cost and revenue, that they are linear.

That means with the increase in output or sales, there will be increase in costs associated as cost is linear, and also the revenue is linear as with increase or decrease in number of units sold, the revenue will also increase or decrease.

But, it has an assumption that the inventory balance do not change, and inventory in hand do not show a linear equation as with the number of units produced or sold.

Thus, "Inventory levels do not increase under CVP analysis".

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4 years ago
You have just purchased a car and, to fund the purchase, you borrowed $25,000. If your monthly payments are $402.18 for the next
Naya [18.7K]

Answer:

E) 4.96%

Explanation:

The computation of the APR could be determined by applying the RATE formula i.e. shown below:

Given that

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=RATE(NPER;PMT;-PV;FV;TYPE)

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4 0
3 years ago
During its first year of operations, Fisher Plumbing Supply Co. had sales of $480,000, wrote off $7,700 of accounts as uncollect
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Answer:

Sales                                       $480,000

<em>Less: Expenses (Bal Figure)  $419,500</em>

Less: Write Off Account         <u>$7,700    </u>

Net Income                             <u>$52,800</u>

If Allowance Method Is Used  

Sales                                                                 $480,000

Less: Expenses                                                $<em>419,500</em>

Less: Write Off Account (1.5% of 480,000)    <u>$7,200</u>

Net Income                                                       <u>$53,300 </u>

8 0
3 years ago
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The correct answer is publish an advertisement on an internet job site

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4 years ago
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Anon25 [30]

Answer:

Explanation:

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