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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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The equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Gravity Hospital’s December

ch4aika [34]

Answer:

The cost of the equipment when it was acquired on January 1, 2011 is $10000

Explanation:

10000÷5=2000

2000*10=20000

20000 80%

X 100% X=25000

25000*20%= 5000 25000-20000=20000

2011 2000

2012 2000

2013 2000

2014 2000

2015 2000 10000

8 0

3 years ago

ABC Corporation raised capital through an offering of equity securities. Which component of the balance sheet has changed as a r

Stels [109]

Answer:

Share capital in the shareholders equity section

Explanation:

The balance sheet is structured according to the accounting formulae

Asset = Liabilities + Owners Equity

When a company raises capita by the issuing of securities or is referred to as share capital.

The securities issued are common stock or preferred stock.

There is a maximum amount that a company can raise from the sale of shares and this is called authorised share capital.

Share capital is a line item that is reported under Owner equity section of the balance sheet.

8 0

3 years ago

Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adj

julsineya [31]

Answer:

Find in the excel file attached detailed adjusting entries required for all transactions in the question.

Explanation:

Please note the analysis of each transaction done under the heading "particulars".

Download xlsx

4 0

3 years ago

The bonds issued by United Corp. bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000

pishuonlain [190]

Answer: 6.40%

Explanation:

Use Excel to calculate this by the formula;

= RATE(Nper,Pmt,-Pv,Fv)

Nper is number of periods = 20 * 2 = 40 semi annual periods

Pmt is the payment = $6%/2 * 1,000 = $30

Pv is the present value = $955

Fv is future value or face value = $1,000

= RATE (40,60,-955,1000)

= 3.20% * 2 (because this is a semi annual rate)

= 6.40%

8 0

3 years ago

Suppose that Steve heads to the local hamburger shop with $3, expecting to spend $2 for his favorite burger and $1 for French fr

PtichkaEL [24]

Answer:

Income effect

Explanation:

The effect is because the customer purchasing power has been changed due to which he is now able to buy more to fulfill his needs and wants. The income effect occurs due to two reasons.

Number 1. The real income of the person has been increased which means his purchasing power has been increased. This means previously you were earning $2000 a month and now you are earning $10000 a month. Now you can buy New Iphone every month because your real income has been increased and this has increased your purchasing power.

Number 2. The price of the product has been fallen and now it is in range of the purchasing power of the customer. This means that if Iphones 11 are available at $100 then everybody buy Iphone 11. This is because the product is in the range of purchasing power of greater number of customers.

5 0

3 years ago