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3 years ago

To which function of management is cvp analysis most applicable?

1 answer:

6 0

Planning function.

Management uses the CVP analysis to determine how changes in costs and volumes affect the company's profitability. They need to perform this analysis in planning their production schedule and levels to optimize value for the company. The planning function will perform this CVP analysis to inform production managers and other executives about how the product costs and volumes affect the levels of net operating income.

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Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to all

hammer [34]

Answer:

a. predetermined overhead rate for each activity

initial concept formation = $3,310 per Project Change

design = $3 per Square feet

construction oversight = $1,130 per Month

b. Classification

unit-level activities :

design

batch level activities :

initial concept formation

Product level activities :

design

Facility level activities :

initial concept formation

construction oversight

Explanation:

This question requires application of Activity Based Costing (ABC) method of allocating overheads.

For each overhead a rate is determined as follows :

initial concept formation

Predetermined overhead rate = Overhead Cost / Number of Project Changes

= $52,960/ 16

= $3,310 per Project Change

design

Predetermined overhead rate = Overhead Cost / Square feet

= $420,000/ 140,000

= $3 per Square feet

construction oversight

Predetermined overhead rate = Overhead Cost / Number of Months

= $118,650/ 105

= $1,130 per Month

Classification

The way the activity is to be absorbed in costing determine its classification

5 0

2 years ago

A university has just hired additional faculty and staff. Who of the following is most likely to earn the highest pay?

Sladkaya [172]

I guess both the same pay,
cause the university tallies the amount of work to both of them

5 0

3 years ago

If customer 2 has a service time of 1.6, and if customer 3 has an interarrival time of 1.1 and a service time of 2.3, when will

Ivan

Your answer should be: "There is not enough information to answer." Hope I helped! :)

3 0

3 years ago

Large firms with multiple offerings in a particular product category engage in _____ targeting strategies to obtain a bigger sha

Sergeeva-Olga [200]

Answer: Differentiated

Explanation:

Differentiated Marketing is a form of marketing where a business offers several products to meet the needs of the different segments found in a market. Large firm's can produce several products to meet the need of the various market segments which would increase purchase of their products.

3 0

3 years ago

Which of the following would be considered an example of rent seeking? A. lobbyists securing spending policies that benefit thei

maks197457 [2]

I think the correct answer would be politicians trading favors that do not benefit the mass populace of voters. Rent seeking is a practice that involves the use of public policy in order to get benefit from it like increasing their benefits in the expense of other. This oftentimes done by a number of politicians.

4 0

3 years ago