Answer:
d. within the relevant range of operating activity, the efficiency of operations can change.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
<em>Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.</em>
Okay what do you need help with
Answer: The Mexican trip with his best friends
Explanation:
Ryan cannot choose both options and thus has to make a decision of which option to take. Therefore he automatically sacrifices the other option. This type of decision is relevant and is known as a relevant cost. Relevant costs are costs that differ between alternatives, and thus influence the decision that you will make.
Opportunity cost is a type of relevant cost. This is the option that is given up / sacrificed when one option (laptop) is chosen over another (Mexican trip). In this case the opportunity cost is the Mexican trip when the laptop is chosen.
Answer:
A. the change in the value of the optimal solution.
Explanation:
- A shadow pricing is associated with each constraint of the model and is the instantaneous changes that occur in the objective model of the optimal solution that is obtained by changing the right-hand side constrained by one unit and a reduced cost is associated with each variable of the model. Also referred to as a monetary values that is assigned to the current unknowable or difficult to calculate costs.
