All are assumed except <u>A. Total variable costs remain the same over the relevant range.</u>
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Cost-volume-profit analysis examines how changes in cost in volume affect income. Variable costs are ones that go up and down depending on production levels, so it would not make sense to assume that variable costs stayed the same over the relevant range.
Answer:
Yes
Explanation:
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<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
Answer:
The choice between consumption in the present and consumption in the future, perception of a close correlation between current income and consumption, and the smoothing of consumption over time as deriving from its comparison to the income which the individual would perceive as his/her permanent income.
Answer and Explanation:
The matching of the accounting term with the definition is shown below:
1. Debit - it comes in the left side i.e. (i)
2. Expense: It decreases the stockholder equity also it contains the debit balance i.e. (d)
3. Net income: It is a statement that shows the expenses and revenue related transactions i.e. (g)
4. Ledger: It is the T-account in which the journal entries are posted i.e. (e)
5. Posting: The data is copied from journal to ledger we called as posting i.e. (f)
6. Normal balance: It is the side of an account in which the account increment is recorded i.e. (b)
7. Payable: It is a liability and it always a credit balance and shown in the balance sheet i.e (h)
8. Journal: In this the transactions are recorded i.e. (c)
9. Receivable: This is an asset and it has always a debit balance i.e. (a)
10. Owner equity: It is amount i.e. to be invested in the business also shows a difference between the total asset and total liabilities i.e. (j)
