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3 years ago

The accuracy of cost-volume-profit analysis is limited because it assumes a strictly linear relationship between the variables.

Business

1 answer:

AnnyKZ [126]3 years ago

4 0

Answer:

True

Explanation:

One of the assumptions of this analysis is that it assumes a linear dependence on costs and income in the analysis interval.

A very useful tool when making strategic decisions, allowing to analyze different scenarios and individual projects, is the Cost-Volume-Profit.

Analysis (CVP) that works under the premise that variable costs increase in the same proportion that increases the sales of a product, while the fixed ones are independent of the volume of sales.

The CVP is useful both for planning and for evaluating results since it emphasizes the behavior of variable costs and the impact that a variation in sales volume can have on costs and benefits.

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A life insurance salesperson who takes advantage of the foot-in-the-door phenomenon would be most likely to

LiRa [457]

C. Ask customers to respond to a brief survey of their attitudes regarding insurance.

The "foot in the door" phenomenon is the tendency for people to agree to a large request if they have already previously agreed to a smaller/easier request. In this case, because the salesman has already convinced the customer to sit down and talk to him, they will be more likely to agree to do more by taking the survey.

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3 years ago

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensati

Dmitry_Shevchenko [17]

1. The total compensation cost pertaining to the incentive stock option plan is $36 million.

2. & 3. The appropriate journal entries to record compensation expense on December 31, 2021, 2022, and 2023 are:

1. Total compensation expense

Total compensation expense=Total option× Fair value per option

Total compensation expense=$3×12 million

Total compensation expense= $36 million

2. SSG Cycles Journal entry

December 31, 2021

Debit Compensation expense $12 million

Credit Additional-paid in capital -Stock options $12 million

($36 million/3 years = $12 million per year)

(To record compensation expense)

December 31, 2022

Debit Compensation expense $12 million

Credit Additional-paid in capital -Stock options $12 million

($36 million/3 years = $12 million per year)

(To record compensation expense)

December 31, 2023

Debit Compensation expense $12 million

Credit Additional-paid in capital -Stock options $12 million

($36 million/3 years = $12 million per year)

(To record compensation expense)

3. May 11, 2025

Debit Cash $132 million

($11×12 million)

Debit Additional-paid in capital -Stock options $36 million

Credit Common stock $12 million

($1×12 million)

Credit Additional-paid in capital -excess par $156 million

($132 million+$36 million-$12 million)

(To record the exercise of stock option)

Learn more here:brainly.com/question/15053230

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2 years ago

Suppose NanoSpeck, a biotechnology firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a sh

marishachu [46]

Answer: Bond holders

Explanation: In simple words, bondholders refers to the creditors of the organisation. The holders of the bond are not the owners as they are paid fixed interest and are not able to participate in the decision making of the company.

In the event of liquidation, bondholders are paid first because it is assumed that the decision makers should be punished for the liquidation and hence they should be paid at last.

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3 years ago

A product found in homes built before 1978 is harmful to children. It can lead to birth defects and is generally hazardous. It s

BabaBlast [244]

Answer:

Asbestos

Explanation:

This environmental hazard is asbestos. Exposure to asbestos especially for a long term period is very detrimental to health. It's fibres can be easily inhaled to the lungs which is dangerous and can cause fibrotic lung disease and also lung cancer. It can lead to defects in birth when inhaled by a pregnant woman and many other health problems. During sales of property it is very important that such hazard is disclosed to the other party.

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3 years ago

The account balances of Sentinel Travel Service for the year ended August 31, 2019, are listed below:

Yanka [14]

Answer:

Explanation:

The preparation of the report form balance sheet as of August 31, 2019 is presented below:

Sentinel Travel Service

Report form balance sheet

For the year ended August 31, 2019

Assets

Cash $143,125

Account receivable $54,240

Supplies $9,300

Land $248,000

Total assets $454,665

Liabilities

Account payable $19,370

Owner equity

Ending capital $435,295

Total liabilities

And owners equity $454,665

The net income would be

= Fees earned - Office expense - Miscellaneous expense - Wages expense

= $774,800 - $178,205- $15,495 - $371,905

= $209,195

And, the ending capital would be

= Opening capital - withdrawn amount + net income - additional cpiatl

= $209,000 - $29,400 + $209,195 + $46,500

= $435,295

7 0

3 years ago