Part III: Tools to Analyze Financial Operations
|
|
- Reynold Greer
- 7 years ago
- Views:
Transcription
1 Part III: Tools to Analyze Financial Operations CHAPTER 7: COST BEHAVIOR AND BREAK-EVEN ANALYSIS
2 Fixed, Variable and Semivariable Costs Distinguishing between fixed, variable and semivariable costs is important because this knowledge is a basic working tool in financial management.
3 Fixed, Variable and Semivariable Costs Fixed Costs are those costs that do not vary in total when activity levels (or volume) of operations change. Examine the examples in the chapter.
4 Fixed, Variable and Semivariable Costs Variable Costs are those costs that vary in direct proportion when activity levels (or volume) of operations change. Examine the examples in the chapter.
5 Fixed, Variable and Semivariable Costs Semivariable Costs vary when the activity levels (or volume) of operations change, but not in direct proportion The most frequent patters of semivariable costs is the step pattern. Examine the examples in the chapter.
6 Analyze Mixed Costs The Manager needs to know how to analyze mixed costs because they occur so often.
7 Analyze Mixed Costs by Two Simple Methods The Predominant Characteristics Method The manager judges whether the cost is more fixed or more variable. The Step Method The manager examines the steps in the step pattern of a fixed cost and decides whether the pattern appears to be more fixed or more variable. Both of these methods are judgmental.
8 Analyze Mixed Costs Through The High-Low Method Cost is examined at its high level and its low level. Obtain the difference in cost between the high and low levels; divide the amount of change in the activity (or volume). Examine the examples in the chapter.
9 Analyze Mixed Costs by the Scatter Graph Method The Scatter Graph finds the Mixed Cost s average rate of variability more accurately. Use a graph to plot all points of data; cost on vertical axis, volume on horizontal axis of the graph. Fit a regression line to the plotted points. The average fixed cost is found at the point where the regression line intersects with the cost axis. Examine the examples in the chapter.
10 Understand Computation Of the Contribution Margin The Contribution Margin equals Variable Cost deducted from net revenues. The answer is the Contribution Margin. (So called because it contributes to fixed costs and profits.) Examine the examples in the chapter.
11 Contribution Margin: Example Examine Table 7-1 Page 53, which contains Operating Room Fixed and Variable Costs. We can see that the total costs are $,1,217,756. Of this amount, $600,822 is designated as variable cost and $616,934 is designated as fixed ($529,556 + $87,378 = $616,934). For purposes of our example, assume the Operating Room revenue amounts to $1,260,000. The contribution margin is computed as follows: Revenue Less Variable Cost Amount $1,260,000 (600,822) Contribution Margin $ 659,178 Thus $659,178 is available to contribute to fixed costs and to profit. In this example fixed costs are $616,934, so there is an amount left to contribute toward profit
12 Contribution Margin: Practice Assumptions: Greenside Clinic has revenue totaling $3,500,000. Of this amount, 40 percent is variable cost and 60 percent is fixed cost. Step 1. Divide costs into variable and fixed. In this case $3,450,000 times 40 percent equals $1,380,000 variable cost and $3,450,000 Times 60 percent equals $2,070,000fixed cost. Step 2. Compute the contribution margin: Revenue Less Variable Costs Contribution Margin Less Fixed Costs Operating Income Amount $3,500,000 (1,380,000) $2,120,000 (2,070,000 $50,000
13 Contribution Margin: Assignment Assumptions: The Mental Health program for the Community Center has just completed its fiscal year end. The Program Director determines That his program has revenue for the year of $1,210,000. He believes his variable expense amounts to $205,000 and he knows his fixed expense amounts to $1,100,000. Required: Compute the contribution margin for the Community Mental Health program. Computation: Revenue Less Variable Cost Contribution Margin Less Fixed Cost Operating Profit (Loss) $1,210,000 ($205,000) $1,005,000 ($1,100,000) ($95,000)
14 Contribution Margin: Assignment What does the result tell us about the program? 1. The contribution margin of $1,005,000 does not cover the fixed costs of $1,100, There is an overall loss in the program of $95, The fixed cost is very high, making it imperative that sufficient revenue levels be achieved.
15 The Cost-Volume-Profit (CVP) Ratio or Breakeven Point The Breakeven Point is the point when the contribution margin equals the fixed costs. Loss equals a loss; More equals a profit. Thus, Breakeven Point. Examine the examples in the chapter.
16 CVP Example Cost - Volume - Profit (CVP) Chart $ Revenues (net) $500, % Less: variable cost (350,000) 70% Contribution margin $150,000 30% Less fixed cost (120,000) Operating income $30,000 Variable Cost Line Revenue Line Breakeven Point Net Operating Income Net Loss Fixed Cost Line Number of Visits
17 Compute the Profit-Volume (PV) Ratio If the contribution margin is expressed as a percentage of net revenues, it is often called the Profit-Volume Ratio A PV chart needs only 2 lines to show the effect of changes in volume. See example and explanation in the chapter.
18 CVP-PV Practice Revenues (net) $500, % Less: variable cost (350,000) 70% Contribution margin $150,000 30% Less fixed cost (120,000) Operating income $30,000 N et Loss (due to unrecovered fixed costs) Breakeven Poin t Fixed Costs Recovered N e t Incom e Projected Revenu es S a fe t y Cushion (before breakeven) Revenue (in thousands of dollars)
19 CPV PV Practice Assumptions: The Mental Health program for the Community Center has just completed its fiscal year end. The Program Director determines That his program has revenue for the year of $1,210,000. He believes his variable expense amounts to $205,000 and he knows his fixed expense amounts to $1,100,000. Revenue Less variable cost Contribution margin Less fixed cost Operating (loss) Amount Percent Per-Visit $1,210, % $ (205,000) 16.94% $1,005, % =PV or CM Ratio $83.06 (1,100,000) 90.91% $95, % $7.85
20 CPV PV Assignment Assumptions: Greenside Clinic has revenue totaling $3,500,000. Of this amount, 40 percent is variable cost and 60 percent is fixed cost. The clinic had 35,000 visits. Revenue Less variable cost Contribution margin Less fixed cost Operating profit (loss) Amount Percent Per-Visit $3,510, % $ (1,380,000) % $2,120, % =PV or CM Ratio $60.57 (2, 070,000) % $50, % $1.43
21 Understand Further Use of The Contribution Margin Contribution Margins are also useful in showing measures of profitability in a simple, easy-tounderstand manner. (For example, see the DRG matrix in Figure 7-8.)
Assumptions of CVP Analysis. Objective 1: Contribution Margin Income Statement. Assumptions of CVP Analysis. Contribution Margin Example
Assumptions of CVP Analysis Cost-Volume-Profit Analysis Expenses can be classified as either variable or fixed. CVP relationships are linear over a wide range of production and sales. Sales prices, unit
More informationAccounting Building Business Skills. Learning Objectives: Learning Objectives: Paul D. Kimmel. Chapter Fourteen: Cost-volume-profit Relationships
Accounting Building Business Skills Paul D. Kimmel Chapter Fourteen: Cost-volume-profit Relationships PowerPoint presentation by Kate Wynn-Williams University of Otago, Dunedin 2003 John Wiley & Sons Australia,
More informationChapter 6: Break-Even & CVP Analysis
HOSP 1107 (Business Math) Learning Centre Chapter 6: Break-Even & CVP Analysis One of the main concerns in running a business is achieving a desired level of profitability. Cost-volume profit analysis
More informationChapter 19 (4) Cost Behavior and Cost-Volume-Profit Analysis Study Guide Solutions Fill-in-the-Blank Equations
Chapter 19 (4) Cost Behavior and Cost-Volume-Profit Analysis Study Guide Solutions Fill-in-the-Blank Equations 1. Variable cost per unit 2. Fixed cost 3. Variable costs 4. Contribution margin 5. Change
More informationSummary. Chapter Five. Cost Volume Relations & Break Even Analysis
Summary Chapter Five Cost Volume Relations & Break Even Analysis 1. Introduction : The main aim of an undertaking is to earn profit. The cost volume profit (CVP) analysis helps management in finding out
More informationChapter. Break-even analysis (CVP analysis)
Chapter 5 Break-even analysis (CVP analysis) 1 5.1 Introduction Cost-volume-profit (CVP) analysis looks at how profit changes when there are changes in variable costs, sales price, fixed costs and quantity.
More informationChapter 6 Cost-Volume-Profit Relationships
Chapter 6 Cost-Volume-Profit Relationships Solutions to Questions 6-1 The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. It can be used in a variety
More informationBreak-Even Point and Cost-Volume-Profit Analysis
9 Break-Even Point and Cost-Volume-Profit Analysis Objectives After completing this chapter, you should be able to answer the following questions: LO.1 LO.2 LO.3 LO.4 LO.5 LO.6 What is the break-even point
More informationCost VOLUME RELATIONS & BREAK EVEN ANALYSIS
1. Introduction The cost volume profit (CVP) analysis helps management in finding out the relationship of costs and revenues to profit. Cost depends on various factors like Volume of production Product
More informationSession 07. Cost-Volume-Profit Analysis
Session 07 Cost-Volume-Profit Analysis Programme : Executive Diploma in Business & Accounting (EDBA 2014) Course : Cost Analysis in Business Lecturer : Mr. Asanka Ranasinghe BBA (Finance), ACMA, CGMA Contact
More informationPart II Management Accounting Decision-Making Tools
Part II Management Accounting Decision-Making Tools Chapter 7 Chapter 8 Chapter 9 Cost-Volume-Profit Analysis Comprehensive Business Budgeting Incremental Analysis and Decision-making Costs Chapter 10
More informationCost-Volume-Profit Analysis
Cost-Volume-Profit Analysis Cost-Volume-Profit Assumptions and Terminology 1 Changes in the level of revenues and costs arise only because of changes in the number of product (or service) units produced
More informationYou and your friends head out to a favorite restaurant
19 Cost-Volume-Profit Analysis Learning Objectives 1 Identify how changes in volume affect costs 2 Use CVP analysis to compute breakeven points 3 Use CVP analysis for profit planning, and graph the CVP
More informationCHAPTER LEARNING OBJECTIVES. Identify common cost behavior patterns.
c04.qxd 6/2/06 2:53 PM Page 124 CHAPTER 4 LEARNING OBJECTIVES 1 2 3 4 5 6 Identify common cost behavior patterns. Estimate the relation between cost and activity using account analysis and the high-low
More informationvolume-profit relationships
Slide 1.3.1 1. Accounting for decision making 1.3 Cost-volume volume-profit relationships Slide 1.3.2 Introduction This chapter examines one of the most basic planning tools available to managers: cost
More informationHelena Company reports the following total costs at two levels of production.
Chapter 22 Helena Company reports the following total costs at two levels of production. 10,000 Units 20,000 Units Direct materials $20,000 $40,000 Maintenance 8,000 10,000 Direct labor 17,000 34,000 Indirect
More informationIt is important to know the following assumptions in CVP analysis before we can use it effectively.
Cost-Volume-Profit analysis (Relevant to AAT Examination Paper 3 Management Accounting) Li Tak Ming, Andy, Deputy Head, Department of Business Administration, Hong Kong Institute of Vocational Education
More informationChapter 25 Cost-Volume-Profit Analysis Questions
Chapter 25 Cost-Volume-Profit Analysis Questions 1. Cost-volume-profit analysis is used to accomplish the first step in the planning phase for a business, which involves predicting the volume of activity,
More informationAccounting 610 2C Cost-Volume-Profit Relationships Page 1
Accounting 610 2C Cost-Volume-Profit Relationships Page 1 I. OVERVIEW A. The managerial accountant uses analytical tools to advise line managers in decision making functions. C-V-P (CVP) analysis provides
More informationIn this chapter, you will learn to use cost-volume-profit analysis.
2.0 Chapter Introduction In this chapter, you will learn to use cost-volume-profit analysis. Assumptions. When you acquire supplies or services, you normally expect to pay a smaller price per unit as the
More informationCost-Volume-Profit. Managerial Accounting Fifth Edition Weygandt Kimmel Kieso. Page 5-2
5-1 Cost-Volume-Profit Managerial Accounting Fifth Edition Weygandt Kimmel Kieso 5-2 study objectives 1. Distinguish between variable and fixed costs. 2. Explain the significance of the relevant range.
More informationCHAPTER 19 (FIN MAN); CHAPTER 4 (MAN) COST BEHAVIOR AND COST-VOLUME-PROFIT ANALYSIS
(FIN MAN); CHAPTER 4 (MAN) COST BEHAVIOR AND COST-VOLUME-PROFIT ANALYSIS 1. Total variable costs change in proportion to changes in the level of activity. Unit variable costs remain the same regardless
More informationSession 7 Bivariate Data and Analysis
Session 7 Bivariate Data and Analysis Key Terms for This Session Previously Introduced mean standard deviation New in This Session association bivariate analysis contingency table co-variation least squares
More information01 In any business, or, indeed, in life in general, hindsight is a beautiful thing. If only we could look into a
01 technical cost-volumeprofit relevant to acca qualification paper F5 In any business, or, indeed, in life in general, hindsight is a beautiful thing. If only we could look into a crystal ball and find
More informationCosting For Decision-Making Break Even Analysis. Break-even even Analysis
Costing For Decision-Making Break Even Analysis CHAPTER 18 Introduction CVP Analysis Behaviour of Fixed and Variable Costs CVP Analysis and Break-even even Analysis Break-even even Analysis Break-even
More informationExhibit 7.5: Graph of Total Costs vs. Quantity Produced and Total Revenue vs. Quantity Sold
244 13. 7.5 Graphical Approach to CVP Analysis (Break-Even Chart) A break-even chart is a graphical representation of the following on the same axes: 1. Fixed costs 2. Total costs at various levels of
More information3. Contribution is a) sales total cost, b) sales variable cost, c) sales fixed cost, d) none of these.
1. The term budget is derived from the French word -------- (a) Boget (b) Bougette (c ) Bogeget (d) None of these 2. Profit will be the same under absorption costing and marginal costing only when a) there
More informationPart Three. Cost Behavior Analysis
Part Three Cost Behavior Analysis Cost Behavior Cost behavior is the manner in which a cost changes as some related activity changes An understanding of cost behavior is necessary to plan and control costs
More informationC 6 - ACRONYMS notesc6.doc Instructor s Supplemental Information Written by Professor Gregory M. Burbage, MBA, CPA, CMA, CFM
C 6 - ACRONYMS notesc6.doc Instructor s Supplemental Information ACRONYMS (ABBREVIATIONS) FOR USE WITH MANAGERIAL ACCOUNTING RELATING TO COST-VOLUME-PROFIT ANALYSIS. CM Contribution Margin in total dollars
More informationAn Income Statement Teaching Approach for Cost-Volume-Profit (CVP) Analysis by Using a Company s CVP Model
An Statement Teaching Approach for Cost-Volume-Profit (CVP) Analysis by Using a Company s CVP Model Freddie Choo San Francisco State University Kim B. Tan California State University Stanislaus This paper
More informationTutorial 3a Cost-Volume-Profit Analysis
Tutorial 3a Cost-Volume-Profit Analysis J. E. Cairnes School of Business and Economics NUI Galway Cost-Volume-Profit (CVP) Analysis This is a method used to examine the relationship between changes in
More informationCosting and Break-Even Analysis
W J E C B U S I N E S S S T U D I E S A L E V E L R E S O U R C E S. 28 Spec. Issue 2 Sept 212 Page 1 Costing and Break-Even Analysis Specification Requirements- Classify costs: fixed, variable and semi-variable.
More informationManagement Accounting Fundamentals
Management Accounting Fundamentals Module 4 Cost behaviour and cost-volume-profit analysis Lectures and handouts by: Shirley Mauger, HB Comm, CGA Part 1 2 3 Module 4 - Table of Contents Content 4.1 Variable
More informationLevel 3 Certificate in Management Accounting
LCCI International Qualifications Level 3 Certificate in Management Accounting Syllabus Effective from October 2008 For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com
More informationBASIC CONCEPTS AND FORMULAE
12 Marginal Costing BASIC CONCEPTS AND FORMULAE Basic Concepts 1. Absorption Costing: a method of costing by which all direct cost and applicable overheads are charged to products or cost centers for finding
More information21. Cost-volume-profit analysis
This book is licensed under a Creative Commons Attribution 3.0 License 21. Cost-volume-profit analysis Learning objectives After studying this chapter, you should be able to: Explain and describe cost
More information1. Briefly explain what an indifference curve is and how it can be graphically derived.
Chapter 2: Consumer Choice Short Answer Questions 1. Briefly explain what an indifference curve is and how it can be graphically derived. Answer: An indifference curve shows the set of consumption bundles
More informationModule 4: Cost behaviour and cost-volume-profit analysis
Page 1 of 28 Module 4: Cost behaviour and cost-volume-profit analysis Required reading Chapter 5, pages 187-213 Chapter 6, pages 230-253 Appendix 6A, pages 256-258 Overview The way in which a cost responds
More informationThe term used for the relative proportion in which a company's products are sold is:
The term used for the relative proportion in which a company's products are sold is: profit ~ Your answer is correct. break-even sales price The correct answer Is shown. In order to convert the margin
More informationFinancial Analysis, Modeling, and Forecasting Techniques
Financial Analysis, Modeling, and Forecasting Techniques Course #5710A/QAS-5710A Course Material Financial Analysis, Modeling, and Forecasting Techniques (Course #5710A/QAS-5710A) Table of Contents PART
More informationExplain the characteristics of different types of cost classifications and their use in costing.
Costs and Revenues Mapping of your evidence to outcomes and criteria Title (and reference number) Level 3 Principles of Costing (K) Learning outcomes learners will: Assessment criteria learners can: Your
More informationHouse Published on www.jps-dir.com
I. Cost - Volume - Profit (Break - Even) Analysis A. Definitions 1. Cost - Volume - Profit (CVP) Analysis: is a means of predicting the relationships among revenues, variable costs, and fixed costs at
More informationChapter 10 Revenue, costs and break-even analysis
Chapter 10, costs and break-even analysis, costs and break-even analysis is the money a business makes from sales. In other words, it is the value of the sales and is also referred to as turnover. The
More informationManagerial Accounting Prof. Dr. Vardaraj Bapat Department of School of Management Indian Institute of Technology, Bombay
Managerial Accounting Prof. Dr. Vardaraj Bapat Department of School of Management Indian Institute of Technology, Bombay Lecture - 26 Cost Volume Profit Analysis Dear participations in our early session,
More informationRepublic Polytechnic Continuing Education & Training Course Structure for : Finance Management
Republic Polytechnic Continuing Education & Training Course Structure for : Finance Management Module Finance Management Description Finance Management is a module that serves to cover key financial aspects
More informationThe term marginal cost refers to the additional costs incurred in providing a unit of
Chapter 4 Solutions Question 4.1 A) Explain the following The term marginal cost refers to the additional costs incurred in providing a unit of product or service. The term contribution refers to the amount
More informationCase Study: Alex Charter School Gordon Johnson, California State University, Northridge, USA Raj Kiani, California State University, Northridge, USA
Case Study: Alex Charter School Gordon Johnson, California State University, Northridge, USA Raj Kiani, California State University, Northridge, USA ABSTRACT This case discusses issues associated with
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Firms that survive in the long run are usually those that A) remain small. B) strive for the largest
More informationSection 12.1 Financial Ratios Section 12.2 Break-Even Analysis
Section 12.1 Financial Ratios Section 12.2 Break-Even Analysis OBJECTIVES Explain what a financial ratio is Describe how income statements are used for financial analysis Compare operating ratios and return-on-sales
More informationBreak-even analysis. On page 256 of It s the Business textbook, the authors refer to an alternative approach to drawing a break-even chart.
Break-even analysis On page 256 of It s the Business textbook, the authors refer to an alternative approach to drawing a break-even chart. In order to survive businesses must at least break even, which
More informationPaper 7 Management Accounting
Technician Level Paper 7 Management Accounting Extended Syllabus INTRODUCTION Extended Syllabuses are part of a comprehensive package of support materials offered by SIAT. This package includes past question
More informationManagerial Accounting. 2011 First semester Takayuki Asada
Managerial Accounting 2011 First semester Takayuki Asada 1 Chapter4 Cost-Volume-Profit Analysis After reading this chapter, you will be able to: Identify common cost behavior patterns. Estimate the relation
More informationChapter 22: Cost-Volume-Profit
Chapter 22: Cost-Volume-Profit DO IT! 1 Types of Costs Helena Company reports the following total costs at two levels of production. 10,000 Units 20,000 Units Direct materials $20,000 $40,000 Maintenance
More informationScatter Plots with Error Bars
Chapter 165 Scatter Plots with Error Bars Introduction The procedure extends the capability of the basic scatter plot by allowing you to plot the variability in Y and X corresponding to each point. Each
More informationThe Marginal Cost of Capital and the Optimal Capital Budget
WEB EXTENSION12B The Marginal Cost of Capital and the Optimal Capital Budget If the capital budget is so large that a company must issue new equity, then the cost of capital for the company increases.
More informationData Visualization. BUS 230: Business and Economic Research and Communication
Data Visualization BUS 230: Business and Economic Research and Communication Data Visualization 1/ 16 Purpose of graphs and charts is to show a picture that can enhance a message, or quickly communicate
More informationsensitivity analysis. Using Excel 2.1 MANUAL WHAT-IF ANALYSIS 2.2 THRESHOLD VALUES
Sensitivity Analysis Using Excel The main goal of sensitivity analysis is to gain insight into which assumptions are critical, i.e., which assumptions affect choice. The process involves various ways of
More informationCreating a Successful Financial Plan
Creating a Successful Financial Plan Basic Financial Reports Balance Sheet - Estimates the firm s worth on a given date; built on the accounting equation: Assets = Liabilities + Owner s Equity Income Statement
More informationMc Graw Hill Education
Managerial Accounting for Managers F o u r t h Edition Eric W. Noreen, Ph.D., CMA Professor Emeritus University of Washington Peter C. Brewer, Ph.D. Wake Forest University Ray H. Garrison, D.B.A., CPA
More informationPractical Business Application of Break Even Analysis in Graduate Construction Education
Journal of Construction Education Spring 1999, Vol. 4, No. 1, pp. 26-37 Copyright 1999 by the Associated Schools of Construction 1522-8150/99/$3.00/Educational Practice Manuscript Practical Business Application
More informationMANAGEMENT ACCOUNTING Cost-Volume-Profit Analysis
MANAGEMENT ACCOUNTING Cost-Volume-Profit Analysis Zofia Krokosz-Krynke, Ph.D., MBA zofia.krokosz-krynke@pwr.edu.pl Wroclaw University of Technology, Building B4 Room 521 http://www.ioz.pwr.edu.pl/pracownicy/krokosz/
More informationCost-Volume-Profit Analysis
Chapter 6 Notes Page 1 Cost-Volume-Profit Analysis Understanding the relationship between a firm s costs, profits and its volume levels is very important for strategic planning. When you are considering
More informationC 5 - COST BEHAVIOR: ANALYSIS AND USE notes-c5.doc Written by Professor Gregory M. Burbage, MBA, CPA, CMA, CFM
C 5 - COST BEHAVIOR: ANALYSIS AND USE notes-c5.doc CHAPTER LEARNING OBJECTIVES: MAJOR: - Use the High-Low method to determine and calculate the structure of a cost. - Define, explain and use variable,
More information12 Marginal Costing. 12.1 Definitions
12 Marginal Costing Learning Objectives When you have finished studying this chapter, you should be able to Understand the difference between absorption costing and marginal costing Understand the concept
More informationVariable Costs. Breakeven Analysis. Examples of Variable Costs. Variable Costs. Mixed
Breakeven Analysis Variable Vary directly in proportion to activity: Example: if sales increase by 5%, then the Variable will increase by 5% Remain the same, regardless of the activity level Mixed Combines
More informationVol. 1, Chapter 10 Cost-Volume-Profit Analysis
Vol. 1, Chapter 10 Cost-Volume-Profit Analysis Problem 1: Solution 1. Selling price - Variable cost per unit = Contribution margin $12.00 - $8.00 = $4.00 Contribution margin / Selling price = Contribution
More informationBreakeven, Leverage, and Elasticity
Breakeven, Leverage, and Elasticity Dallas Brozik, Marshall University Breakeven Analysis Breakeven analysis is what management is all about. The idea is to compare where you are now to where you might
More informationGrade level: secondary Subject: mathematics Time required: 45 to 90 minutes
TI-Nspire Activity: Paint Can Dimensions By: Patsy Fagan and Angela Halsted Activity Overview Problem 1 explores the relationship between height and volume of a right cylinder, the height and surface area,
More information> DO IT! Chapter 24 Budgetary Control and Responsibility Accounting. Flexible Budgets. Flexible Budget Reports D-125. Solution Action Plan
Chapter 24 Budgetary Control and Responsibility Accounting > DO IT! Flexible Budgets In Strassel Company s flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical
More informationCost Behavior and. Types of Cost Behavior Patterns. Summary of VC and FC Behavior. Cost In Total Per Unit
Cost Behavior and Cost Estimation 1 Types of Cost Behavior Patterns Summary of VC and FC Behavior Cost In Total Per Unit Total VC is VC per unit remains VC proportional to the activity the same over wide
More information(AA12) QUANTITATIVE METHODS FOR BUSINESS
All Rights Reserved ASSCIATIN F ACCUNTING TECHNICIANS F SRI LANKA AA EXAMINATIN - JULY 20 (AA2) QUANTITATIVE METHDS FR BUSINESS Instructions to candidates (Please Read Carefully): () Time: 02 hours. (2)
More informationChapter 3: Cost-Volume-Profit Analysis and Planning
Chapter 3: Cost-Volume-Profit Analysis and Planning Agenda Direct Materials, Direct Labor, and Overhead Traditional vs. Contribution Margin Income Statements Cost-Volume-Profit (CVP) Analysis Profit Planning
More informationYears after 2000. US Student to Teacher Ratio 0 16.048 1 15.893 2 15.900 3 15.900 4 15.800 5 15.657 6 15.540
To complete this technology assignment, you should already have created a scatter plot for your data on your calculator and/or in Excel. You could do this with any two columns of data, but for demonstration
More informationKÖZGAZDASÁGI- MARKETING ALAPISMERETEK ANGOL NYELVEN
emelt szint angol nyelven 0801 ÉRETTSÉGI VIZSGA 2009. május 22. KÖZGAZDASÁGI- MARKETING ALAPISMERETEK ANGOL NYELVEN EMELT SZINTŰ ÍRÁSBELI ÉRETTSÉGI VIZSGA JAVÍTÁSI-ÉRTÉKELÉSI ÚTMUTATÓ OKTATÁSI ÉS KULTURÁLIS
More informationData Visualization Best Practice. Sophie Sparkes Data Analyst
Data Visualization Best Practice Sophie Sparkes Data Analyst http://graphics.wsj.com/infectious-diseases-and-vaccines/ http://blogs.sas.com/content/jmp/2015/03/05/graph-makeover-measles-heat-map/ http://graphics.wsj.com/infectious-diseases-and-vaccines/
More informationApplying the Lessons to Practice. Jayaraman Vijayakumar Associate Professor of Accounting Virginia Commonwealth University. and
Applying the Lessons to Practice Jayaraman Vijayakumar Associate Professor of Accounting Virginia Commonwealth University and Benson Wier Associate Professor of Accounting Virginia Commonwealth University
More information1. Which one of the following is the format of a CVP income statement? A. Sales Variable costs = Fixed costs + Net income.
1. Which one of the following is the format of a CVP income statement? A. Sales Variable costs = Fixed costs + Net income. B. Sales Fixed costs Variable costs Operating expenses = Net income. C. Sales
More informationThe Profit Function: A Pedagogical Improvement For Teaching Operating Breakeven Analysis
The Profit Function: A Pedagogical Improvement For Teaching Operating Breakeven Analysis Bruce D. Bagamery, Central Washington University - Lynnwood Abstract This paper presents a graphical approach for
More information2. Cost-Volume-Profit Analysis
Cost-Volume-Profit Analysis Page 1 2. Cost-Volume-Profit Analysis Now that we have discussed a company s cost function, learned how to identify its fixed and variable costs. We will now discuss a manner
More informationPart 1: Background - Graphing
Department of Physics and Geology Graphing Astronomy 1401 Equipment Needed Qty Computer with Data Studio Software 1 1.1 Graphing Part 1: Background - Graphing In science it is very important to find and
More informationStraightening Data in a Scatterplot Selecting a Good Re-Expression Model
Straightening Data in a Scatterplot Selecting a Good Re-Expression What Is All This Stuff? Here s what is included: Page 3: Graphs of the three main patterns of data points that the student is likely to
More informationCourse- Financial Management.
Course- Financial Management. PHAR 4233 Semester/Year: Spring 2013 Course dates2/2/2013-2/27/2013 Lecture Objective Template Lecture #1/2 Date/time: 10:00 AM 1/3/2013 Lecture/Name Topic: Introduction to
More informationCourse- Financial Management.
Course- Financial Management. PHAR 4233 Semester/Year: Spring 2015 Lecture Objective Template Lecture #1/2 Date/time: 10:00 AM 1/6-7/2015 Lecture/Name Topic: Introduction to Financial Management and Accounting
More informationManagerial Accounting Cost Volume Profit (CVP) Homework problems
Managerial Accounting Cost Volume Profit (CVP) Homework problems Problem #29 CVP Analysis using CM per unit The controller of Sawdust Furniture Company has determined the following estimates for a new
More informationMath 1314 Lesson 8 Business Applications: Break Even Analysis, Equilibrium Quantity/Price
Math 1314 Lesson 8 Business Applications: Break Even Analysis, Equilibrium Quantity/Price Three functions of importance in business are cost functions, revenue functions and profit functions. Cost functions
More informationWeek 1: Functions and Equations
Week 1: Functions and Equations Goals: Review functions Introduce modeling using linear and quadratic functions Solving equations and systems Suggested Textbook Readings: Chapter 2: 2.1-2.2, and Chapter
More informationTHE COST OF COLLEGE EDUCATION PROJECT PACKET
THE COST OF COLLEGE EDUCATION PROJECT PACKET Introduction We live in a society where a college education is considered the norm and not the exception. While everyone is expected to attend a college or
More information3.3 Applications of Linear Functions
3.3 Applications of Linear Functions A function f is a linear function if The graph of a linear function is a line with slope m and y-intercept b. The rate of change of a linear function is the slope m.
More informationIndiana State Core Curriculum Standards updated 2009 Algebra I
Indiana State Core Curriculum Standards updated 2009 Algebra I Strand Description Boardworks High School Algebra presentations Operations With Real Numbers Linear Equations and A1.1 Students simplify and
More information1) Write the following as an algebraic expression using x as the variable: Triple a number subtracted from the number
1) Write the following as an algebraic expression using x as the variable: Triple a number subtracted from the number A. 3(x - x) B. x 3 x C. 3x - x D. x - 3x 2) Write the following as an algebraic expression
More informationCHAE Review Pricing Modules, Cash Management and Ratio Analysis
CHAE Review Pricing Modules, Cash Management and Ratio Analysis This is a complete review of the two volume text book, Certified Hospitality Accountant Executive Study Guide, as published by The Educational
More informationPre-Test Chapter 8 ed17
Pre-Test Chapter 8 ed17 Multiple Choice Questions 1. The APC can be defined as the fraction of a: A. change in income that is not spent. B. change in income that is spent. C. specific level of total income
More informationAutomating FP&A Analytics Using SAP Visual Intelligence and Predictive Analysis
September 9 11, 2013 Anaheim, California Automating FP&A Analytics Using SAP Visual Intelligence and Predictive Analysis Varun Kumar Learning Points Create management insight tool using SAP Visual Intelligence
More informationCreating Bar Charts and Pie Charts Excel 2010 Tutorial (small revisions 1/20/14)
Creating Bar Charts and Pie Charts Excel 2010 Tutorial (small revisions 1/20/14) Excel file for use with this tutorial GraphTutorData.xlsx File Location http://faculty.ung.edu/kmelton/data/graphtutordata.xlsx
More informationQualification structure and syllabus CIMA Certificate in Business Accounting from 2011
Qualification structure and syllabus CIMA Certificate in Business Accounting from 011 Contents Contents CIMA Certificate in Business Accounting qualification 011 01 Structure of the CIMA Certificate in
More informationRevision point: Fixed costs are those that do not change with changes in production levels, e.g. rent.
SECTION ONE BREAK-EVEN ANALYSIS Break-even point What is meant by the term break even? A firm breaks even when income is sufficiently high to exactly cover total costs therefore neither a profit nor a
More informationCOLLEGE OF BUSINESS ADMINISTRATION UNDERGRADUATE MANAGEMENT SPECIFIC ASSESSMENT MATRIX
BUS 110 Understand and utilize Internet and IT concepts Understand and utilize word processing applications Understand and utilize spreadsheet applications Understand and utilize presentation software
More informationcontaining Kendall correlations; and the OUTH = option will create a data set containing Hoeffding statistics.
Getting Correlations Using PROC CORR Correlation analysis provides a method to measure the strength of a linear relationship between two numeric variables. PROC CORR can be used to compute Pearson product-moment
More information