Briefly explain cost-volume-profit (CVP) analysis.
What will be an ideal response?
The most common application of managerial accounting, called cost-volume-profit analysis (CVP) is based on sorting costs into only two categories: variable costs and fixed costs. The total cost is the sum of variable costs and fixed costs. To make this analysis, all costs that change with changes in output (which can be units made or sold, or sales revenue) are called variable costs. All costs that do not change because of changes in output are called fixed costs.
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Which of the following illustrates reverse logistics?
a. a wholesaler implementing direct store distribution for a retailer b. a manufacturer implementing vendor-managed inventory for a retailer c. a wholesaler shipping a replacement part directly to a final consumer d. a retailer handling a product recall for a manufacturer
The production budget is prepared in units only, not dollars
Indicate whether the statement is true or false
The price elasticity of demand for a specific brand of deodorant is 1. The market for this product is considered
A. inelastic. B. a prestige market. C. saturated. D. elastic. E. dynamic.
A fire insurance policy is assignable without the insurer's consent because the policy "runs" with the insured property.
Answer the following statement true (T) or false (F)