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2 years ago

Which of the following are assumptions of cost volume profit analysis?

Business

1 answer:

Klio2033 [76]2 years ago

6 0

Answer:

The correct answer are B and D

Explanation:

CVP stands for the Cost Volume Profit analysis, which is defined as the situation where the companies evaluate or determine what will happen financially when the selling price varies or change, the costs change or the production volume changes.

The assumptions of the CVP are:

1. Costs are linear and are designated either variable or fixed.

2. The selling price per unit will be constant and will not decrease/ increase grounded on volume.

3. In the case of the firm or business which sells the multiple products, the sales mix will be constant.

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The salient or important attributes about a particular product that a consumer bases his or her product evaluation on are called

solmaris [256]

Answer:Evaluative criteria

Explanation:

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3 years ago

Explain in three sentences what “a decision to communicate constructively” means

Brilliant_brown [7]

A decision to communicate means to communicate positively, offering help and support, and it doesn’t involve criticism and dispiriting. It a method of communicating more effectively and efficiently. In addition, communicating constructively is a way to present your points to a person or audience so they can understand them.

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2 years ago

Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving s

vesna_86 [32]

Answer:

2016

a. Dr Account receivable $1,353,000

Cr Sales revenue $1,353,000

Dr Cost of goods sold $979,100

Cr Inventory $979,100

b Dr Allowance for doubtful accounts $20,900

Cr Account receivable $20,900

c Dr Cash $669,200

Cr Account receivable $669,200

d Dr Bad debt expense $33,495

Cr Allowance for doubtful accounts $33,495

2017

e Dr Account receivable $1,544,700

Cr Sales revenue $1,544,700

Dr Cost of goods sold $1,318,300

Cr Inventory $1,318,300

f Dr Allowance for doubtful accounts $27,000

Cr Account receivable $27,000

Dr Cash $1,194,200

Cr Account receivable $1,194,200

h Dr Bad debt expense $33,147

Cr Allowance for doubtful accounts $33,147

Explanation:

Preparation of the journal entries to record Liang's 2016 and 2017 summarized transactions and its year-end adjustments to record bad debts expense

2016

a. Dr Account receivable $1,353,000

Cr Sales revenue $1,353,000

Dr Cost of goods sold $979,100

Cr Inventory $979,100

b Dr Allowance for doubtful accounts $20,900

Cr Account receivable $20,900

c Dr Cash $669,200

Cr Account receivable $669,200

d Dr Bad debt expense $33,495

Cr Allowance for doubtful accounts $33,495

($1,353,000-$669,200-$20,900=$662,900)

($662,900*1.90%+$20,900)

($12,595+$20,900=$33,495)

2017

e Dr Account receivable $1,544,700

Cr Sales revenue $1,544,700

Dr Cost of goods sold $1,318,300

Cr Inventory $1,318,300

f Dr Allowance for doubtful accounts $27,000

Cr Account receivable $27,000

Dr Cash $1,194,200

Cr Account receivable $1,194,200

h Dr Bad debt expense $33,147

Cr Allowance for doubtful accounts $33,147

($1,544,700+$662,900-$1,194,200-$27,000=$986,400)

($986,400*1.90%=$18,742)

($18,742+$27,000-$12,595=$33,147)

5 0

2 years ago

Cash flows of two mutually exclusive projects are as follows. Project A costs $80,000 initially and will have a $15,000 salvage

son4ous [18]

Answer:

C. The present worth of project A is -$143,252.17

Explanation:

Present worth can be calculated using a financial calculator

For method A ,

Cash flow in year 0 = $80,000

Cash flow in year 1 and 2 = $30,000

Cash flow in year 3 = $30,000 - $15,000 = $15,000

I = 10%

Present worth= $ 143,335.84

For method B,

Cash flow in year 0 = $120,000

Cash flow in year 1 and 2 = $8, 000

Cash flow in year 3 = $8,000 - $40,000 = $-32,000

I = 10%

Present worth = $130,157.78

Method b would is chosen because it worth less.

To find the present worth using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

4 0

3 years ago

Tangshan Mining Company, with a cost of capital of 10 percent, is considering investing in project A, with an initial investm

alexdok [17]

Answer:

the breakeven cash inflow for the project is $131474

Explanation:

given data

cost of capital = 10 percent

initial investment = $1,000,000

useful life = 15 year

to find out

the breakeven cash inflow for the project

solution

first we consider here annual cash inflows that is = x

now break even point is the one at which the net present value of the project = 0

so we can say that here

Present value of cash inflows - Present value of cash outflows = 0 .................1

here we know Present value of cash inflows = x × PVAF ( 10%,15 years)

Present value of cash inflows = x × 7.6060

put value in equation 1 we get

x × 7.6060 - $1,000,000 = 0

solve and we get x

x = $\frac{1,000,000}{7.6060}$

x = $131474

so the breakeven cash inflow for the project is $131474

7 0

3 years ago