The breakeven chart helps the management in… A. Forecasting costs and profits B. Cost control C. Long term planning and growth D. All of the above

The breakeven chart helps the management in…
A. Forecasting costs and profits
B. Cost control
C. Long term planning and growth
D. All of the above
by

1 Answer

Answer :

D. All of the above
by

Related questions

Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, costs, and profits? (a) Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis

Description : Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, ... Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis

Last Answer : (b) Breakeven analysis ;

Cost accounting mainly helps the management in: A. Earning extra profits B. Providing information to the management for decision-making. C. Fixing process of the products. D. Selling products

Description : Cost accounting mainly helps the management in: A. Earning extra profits B. Providing information to the management for decision-making. C. Fixing process of the products. D. Selling products

Last Answer : B. Providing information to the management for decision-making.

In market-penetration pricing, the company’s objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. Maximize their market share C. Minimize their market share D. Maximize volume E. None of the above

Description : In market-penetration pricing, the company's objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. ... their market share C. Minimize their market share D. Maximize volume E. None of the above

Last Answer : B. Maximize their market share

Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Description : Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Last Answer : C. Contribution above breakeven point becomes profit.

_______ takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. A. Marketing management B. Forecasting C. Segmentation D. Targeting E. Distribution

Description : _______ takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. A. Marketing management B. Forecasting C. Segmentation D. Targeting E. Distribution

Last Answer : A. Marketing management

Margin of safety is equal to A. Actual sales – Sales at Breakeven point B. Actual sales + Sales at Breakeven point C. Actual sales x Sales at Breakeven point D. Actual sales / Sales at Breakeven point

Description : Margin of safety is equal to A. Actual sales – Sales at Breakeven point B. Actual sales + Sales at Breakeven point C. Actual sales x Sales at Breakeven point D. Actual sales / Sales at Breakeven point

Last Answer : A. Actual sales – Sales at Breakeven point

Which of the following statements is true about stress management A. Stress management is learning about the connection between mind and body B. Stress management helps us control our health in a positive sense C. Stress management teaches us to avoid all kinds of stress D. Only ‘A’ & ‘B’ are right

Description : Which of the following statements is true about stress management A. Stress management is learning about the connection between mind and body B. Stress management helps us control our health in a positive sense C. ... management teaches us to avoid all kinds of stress D. Only A' & B' are right

Last Answer : D. Only ‘A’ & ‘B’ are right

A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Last Answer : (b) 3,000 units

Management accounting assists the management A. Only in control B. Only in direction C. Only in planning D. In planning, direction and control

Description : Management accounting assists the management A. Only in control B. Only in direction C. Only in planning D. In planning, direction and control

Last Answer : D. In planning, direction and contro

According to the private property defense of the classical model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view? A. Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom. B. The connection between ownership and control that exists for personal property does not legally exist for corporate property. C. Investors buy their stocks with the hope of maximizing return on their investment. D. Stockholders in publicly traded corporations are better understood as investors rather than owners.

Description : According to the private property defense of the classical model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing ... . Stockholders in publicly traded corporations are better understood as investors rather than owners.

Last Answer : C. Investors buy their stocks with the hope of maximizing return on their investment. D. Stockholders in publicly traded corporations are better understood as investors rather than owners.

The process of budgeting helps in the control of A. Cost of production B. Liquidity C. Capital Expenditure D. All of the above

Description : The process of budgeting helps in the control of A. Cost of production B. Liquidity C. Capital Expenditure D. All of the above

Last Answer : D. All of the above

To determine the breakeven point in units, one divides fixed costs by: A)total costs. B)variable costs times price. C)price minus variable costs. D)price per unit.

Description : To determine the breakeven point in units, one divides fixed costs by: A)total costs. B)variable costs times price. C)price minus variable costs. D)price per unit.

Last Answer : C)price minus variable costs.

Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. (c) Centres having the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Description : Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed (b) A location, person or an item ... the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Last Answer : Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed

Two major factors are changing the face of today’s communications. One of these factors is the fact that: A. Costs of promotion are rising. B. Mass markets are fragmented and marketers are shifting away from mass marketing. C. Global communications are not growing rapidly enough. D. Marcom managers have achieved more power and control.

Description : Two major factors are changing the face of today's communications. One of these factors is the fact that: A. Costs of promotion are rising. B. Mass markets are fragmented and ... Global communications are not growing rapidly enough. D. Marcom managers have achieved more power and control.

Last Answer : B. Mass markets are fragmented and marketers are shifting away from mass marketing.

Product elimination can best be described as the process of deleting a product from the product mix when it A)is perceived as a failure by top management. B)increases production costs and decreases profits. C)no longer responds to promotional efforts. D)no longer satisfies a sufficient number of customers.

Description : Product elimination can best be described as the process of deleting a product from the product mix when it A)is perceived as a failure by top management. B)increases production costs and ... C)no longer responds to promotional efforts. D)no longer satisfies a sufficient number of customers.

Last Answer : D)no longer satisfies a sufficient number of customers.

Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales

Description : Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales

Last Answer : A sales forecast is only......

When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Description : When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Last Answer : D. There will be neither profit not loss

When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false

Description : When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false

Last Answer : C. There will be loss less than fixed costs

Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs C. If contribution is positive and more than fixed cost there will be profit. D. All of the above

Description : Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs ... contribution is positive and more than fixed cost there will be profit. D. All of the above

Last Answer : A. If contribution is zero, there is loss equal to fixed costs

Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed costs are treated as product cost. (d) Marginal costing is not a technique of cost analysis. A. A and B B. B and C C. A and D D. B and D

Description : Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed ... cost analysis. A. A and B B. B and C C. A and D D. B and D

Last Answer : A. A and B

Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Description : Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Last Answer : A. Prime cost + All Variable overheads

In responsibility cost accounting the costs in focus are A. Controllable costs B. Uncontrollable costs C. Both a and b D. None of the above

Description : In responsibility cost accounting the costs in focus are A. Controllable costs B. Uncontrollable costs C. Both a and b D. None of the above

Last Answer : A. Controllable costs

Cost behaviour analysis is a study of how a firm's costs A. relate to competitors' costs B. relate to general price level changes C. respond to changes in activity levels within the company D. respond to changes in the gross national product

Description : Cost behaviour analysis is a study of how a firm's costs A. relate to competitors' costs B. relate to general price level changes C. respond to changes in activity levels within the company D. respond to changes in the gross national product

Last Answer : C. respond to changes in activity levels within the company

A firm that bases its price on how it thinks the competitors will price, rather than on its own costs or demand, to win a contract is most likely using A. Going-rate pricing B. Cost-plus pricing C. Perceived-value pricing D. Sealed-bid pricing

Description : A firm that bases its price on how it thinks the competitors will price, rather than on its own costs or demand, to win a contract is most likely using A. Going-rate pricing B. Cost-plus pricing C. Perceived-value pricing D. Sealed-bid pricing

Last Answer : C. Perceived-value pricing

Opportunity cost helps in: A. Ascertainment of cost B. Controlling cost C. Making managerial decisions D. Fixing selling price

Description : Opportunity cost helps in: A. Ascertainment of cost B. Controlling cost C. Making managerial decisions D. Fixing selling price

Last Answer : C. Making managerial decisions

The object of budgetary control is __________ a) Planning b) Forecasting c) organizing d) directing

Description : The object of budgetary control is __________ a) Planning b) Forecasting c) organizing d) directing

Last Answer : a) Planning

The objectives of Cash Flow Statement are (i) Analysis of cash position (ii) Short-term cash planning (iii) Evaluation of liquidity (iv) Comparison of operating Performance A. Both (i) and (ii) B. Both (i) and (iii) C. Both (ii) and (iv) D. (i), (ii), (iii), (iv)

Description : The objectives of Cash Flow Statement are (i) Analysis of cash position (ii) Short-term cash planning (iii) Evaluation of liquidity (iv) Comparison of operating Performance A. Both (i) and (ii) B. Both (i) and (iii) C. Both (ii) and (iv) D. (i), (ii), (iii), (iv)

Last Answer : D. (i), (ii), (iii), (iv)

Which of the following statements are not true about budget, budgeting & budgetary control? A. Budgetary control works on the basis of best option B. Budget is one of the important mediums of communication C. Budgeting develops the quality of objectivity in planning D. None of the above

Description : Which of the following statements are not true about budget, budgeting & budgetary control? A. Budgetary control works on the basis of best option B. Budget is one of the important mediums of communication C. Budgeting develops the quality of objectivity in planning D. None of the above

Last Answer : D. None of the above

The management of natural resources should take into A. A long term perspective B. Environmental pollution C. Their equitable distribution D. All of the above and safe disposal of wastes

Description : The management of natural resources should take into A. A long term perspective B. Environmental pollution C. Their equitable distribution D. All of the above and safe disposal of wastes

Last Answer : D. All of the above and safe disposal of wastes

The management of natural resources should take into A. A long term perspective B. Environmental pollution C. Their equitable distribution D. All of the above and safe disposal of wastes

Description : The management of natural resources should take into A. A long term perspective B. Environmental pollution C. Their equitable distribution D. All of the above and safe disposal of wastes

Last Answer : D. All of the above and safe disposal of wastes

Which of the following explains the term economic growth? A. Increase in per capita production B. Increase in per capita real income C. Structural change in the economy D. All the above are right

Description : Which of the following explains the term economic growth? A. Increase in per capita production B. Increase in per capita real income C. Structural change in the economy D. All the above are right

Last Answer : D. All the above are right

Rate of growth of an economy is measured in term of: A. National Income B. Per Capita Income C. Number of people who have been lifted above the poverty line D. Industrial Development

Description : Rate of growth of an economy is measured in term of: A. National Income B. Per Capita Income C. Number of people who have been lifted above the poverty line D. Industrial Development

Last Answer : A. National Incom

The difference between accounting profits and economic profits is: A. Implicit Cost B. explicit costs C. Fixed Costs D. Variable Costs

Description : The difference between accounting profits and economic profits is: A. Implicit Cost B. explicit costs C. Fixed Costs D. Variable Costs

Last Answer : ANSWER: A

When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.

Description : When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.

Last Answer : C)stop producing additional units to maximise profits.

Select the FALSE statement about an inventory system. A)The objective of minimum total inventory cost must be balanced against a customer service level necessary to maximise profits. B)EOQ is the size of inventory that minimises only the cost of carrying inventory. C)There is a tradeoff between inventory carrying costs and the probability of stockouts. D)Inventory carrying costs usually increase as the level of customer service increases.

Description : Select the FALSE statement about an inventory system. A)The objective of minimum total inventory cost must be balanced against a customer service level necessary to maximise profits. B)EOQ is ... of stockouts. D)Inventory carrying costs usually increase as the level of customer service increases.

Last Answer : B)EOQ is the size of inventory that minimises only the cost of carrying inventory.

The term management accounting was first coined in A. 1960 B. 1950 C. 1945 D. 1955

Description : The term management accounting was first coined in A. 1960 B. 1950 C. 1945 D. 1955

Last Answer : B. 1950

Which of the following are tools of management accounting? (i) Decision accounting (ii) Standard costing (iii) Budgetary control (iv) Human Resources Accounting A. (i), (ii) and (iii) B. (i), (iii) and (iv) C. (i),(ii) and (iii) D. (i), (ii), (iii), (iv)

Description : Which of the following are tools of management accounting? (i) Decision accounting (ii) Standard costing (iii) Budgetary control (iv) Human Resources Accounting A. (i), (ii) and (iii) B. (i), (iii) and (iv) C. (i),(ii) and (iii) D. (i), (ii), (iii), (iv)

Last Answer : C. (i),(ii) and (iii)

Malcolm Baldrige national quality award is for (MBNQA) A. Total Quality Management B. International Standard Organization C. Total Productive Maintenance D. Total Quality Control

Description : Malcolm Baldrige national quality award is for (MBNQA) A. Total Quality Management B. International Standard Organization C. Total Productive Maintenance D. Total Quality Control

Last Answer : A. Total Quality Management

Hydrology helps in (A) Predicting maximum flows (B) Deciding the minimum reservoir capacity (C) Forecasting the availability of quantity of water at reservoir site (D) All the above

Description : Hydrology helps in (A) Predicting maximum flows (B) Deciding the minimum reservoir capacity (C) Forecasting the availability of quantity of water at reservoir site (D) All the above

Last Answer : Answer: Option D

Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Description : Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Last Answer : a) Forecasting

Which of the following are limitations of break-even analysis? A. Static concept B. Capital employed is taken into account. C. Limitation of non-linear behaviour of costs D. Limitation of presence of perfect competition

Description : Which of the following are limitations of break-even analysis? A. Static concept B. Capital employed is taken into account. C. Limitation of non-linear behaviour of costs D. Limitation of presence of perfect competition

Last Answer : A. Static concept

In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If the volume of sales and output is equal in a period, profit will be same in absorption costing and marginal costing. C. Both a and b D. None of the above

Description : In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If ... same in absorption costing and marginal costing. C. Both a and b D. None of the above

Last Answer : C. Both a and b

Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. A. Total fixed costs B. Total costs C. Total fixed costs D. None of the above

Description : Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. A. Total fixed costs B. Total costs C. Total fixed costs D. None of the above

Last Answer : B. Total costs

Which of the following statements are true about responsibility accounting? A. Responsibility accounting results in inter-departmental conflicts B. In responsibility center more focus is paid on products, processes or jobs C. No focus is paid on controlling costs D. None of the above

Description : Which of the following statements are true about responsibility accounting? A. Responsibility accounting results in inter-departmental conflicts B. In responsibility center more focus is paid on products, processes or jobs C. No focus is paid on controlling costs D. None of the above

Last Answer : A. Responsibility accounting results in inter-departmental conflicts

If the activity level increases 10%, total variable costs will A. remain the same B. increase by more than 10% C. decrease by less than 10% D. increase by10%

Description : If the activity level increases 10%, total variable costs will A. remain the same B. increase by more than 10% C. decrease by less than 10% D. increase by10%

Last Answer : D. increase by10%

Method of managing promotion budget by defining objectives, determining tasks to achieve objectives and estimating costs for activities is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing promotion budget by defining objectives, determining tasks to achieve objectives and estimating costs for activities is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : D. objective and task method

To maximize market share, a firm may use _____________ pricing, which is based on the theory that as sales volume increases, unit costs will decrease. A. Market-penetration B. Market-skimming C. Value pricing D. Demand pricing E. Price bands

Description : To maximize market share, a firm may use _____________ pricing, which is based on the theory that as sales volume increases, unit costs will decrease. A. Market-penetration B. Market-skimming C. Value pricing D. Demand pricing E. Price bands

Last Answer : A. Market-penetration

The ___________ has a code of ethics that helps organizations monitor their ads A. AAA B. FTC C. FDA D. All of the above

Description : The ___________ has a code of ethics that helps organizations monitor their ads A. AAA B. FTC C. FDA D. All of the above

Last Answer : A. AAA

Which of the following is not an argument for the assumption of social responsibility by business? (a) Long-run profits ; (b) Stockholder interests ; (c) Ethical obligations ; (d) Costs

Description : Which of the following is not an argument for the assumption of social responsibility by business? (a) Long-run profits ; (b) Stockholder interests ; (c) Ethical obligations ; (d) Costs

Last Answer :  (b) Stockholder interests ;

102. To draw a CUSUM chart following data is required a) Monthly energy consumption& monthly production b) Monthly specific energy consumption and turn over c) Monthly profits and production d) None

Description : 102. To draw a CUSUM chart following data is required a) Monthly energy consumption& monthly production b) Monthly specific energy consumption and turn over c) Monthly profits and production d) None

Last Answer : Monthly energy consumption& monthly production