Discuss the advantages and disadvantages of partial measures of productivity.

Q: How does the variable cost per unit change as the level of activity (or cost driver) increases? Why?

A: A variable cost changes is directly proportional to the change in the level of activity or cost…

Q: Define and explain the contribution margin ratio.

A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…

Q: Discuss how contribution margin can be maximized when one factor limits productive capacity.

A: In this question, we are taking the example of a small medical. Factors that would most likely to…

Q: Marginal cost and marginal benefit analysis are important to compute efficient level of production.…

A: marginal analysis is generally the process of decision making which involve an examination of…

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: Which is more consistent with cost-volume-profit analysis, variable costing or absorption costing?…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: Give an example of how a manager can decrease variable costs while increasing fixed costs?

A: Variable Cost: Variable costs are costs which are directly vary with the change in production.…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planningbusiness…

A: Contribution Margin Ratio: The contribution margin ratio shows the amount of difference in the…

Q: What is a partial-productivity measure?

A:

Q: What is meant by aggregate productivity, and what are its limitations?

A:

Q: Why do managers consider direct costs to be more accurate than indirect costs?

A: Cost: Cost refers to the expense incurred by the business to earn revenue from sales. In other…

Q: Choose the correct answer: The outcome of resource utilization divided by the amount of resources…

A: Manufacturing cycle efficiency helps to measure the percentage of time spent in product…

Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…

A: Variable costs: These are the costs that proportionately change with the changes in the activity…

Q: What is the effect of an increase in activity on total variable costs,variable cost per unit of…

A: Total cost refers to the cost or amount incurred by the company in production of its goods and…

Q: Show income comparison's of absorption and variable costing?

A: Absorption costing method can be defined as the all the costs that is associated with the production…

Q: How do managers decide whether a cost is avariable or a fixed cost?

A: Cost refers to the amount of money incurred for acquiring a product or manufacturing a product. Cost…

Q: What are the consequences of broad averaging on costs? Explain?

A: Broad Averaging:Broad averaging is also known as peanut butter cost is a costing approach of…

Q: What is the difference between absorption-costing income and variable-costing income?

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: What is interpretation of the usefulness of the contribution margin concept?

A: Contribution margin The additional profit gained for each unit sold is calculated by subtracting the…

Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Define total productive efficiency

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Define and distinguish between contribution margin per unit and contribution margin percentage?

A: Contribution margin is the difference between the total revenue and total variable costs of a…

Q: y objective in measuring productivity is

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: what is the definition and significance of contribution margin ratio

A: Contribution margin ratio Contribution margin ratio is also profit-volume ratio. It helps us to…

Q: Is activity-based costing always beneficial to an organization? in what situations would itb…

A: Activity based costing is a system of costing in which  allocated on the basis of activity done .it…

Q: Why might the number of products in a joint cost situation differ from the number of outputs?

A: Products: Product is anything that has a worth or which is capable of being bought and sold in the…

Q: Describe how total variable costs and unit variable costs behave as the level of activity increases?

A: Variable cost varies with the changing level of activity i.e. if the activity increases the variable…

Q: “We are already measuring total factor productivity. Measuring partial productivities would be of no…

A: Total factor productivity: It measures the ratio of aggregate productivity. It is computed by…

Q: Discuss how non-production and production cost could affect the profitability

A: Introduction:- Cost are classified into two types based on cost types as follows under:- Non…

Q: What connection exists between unit profit and labor costs?

A: A cost is the amount of money that was expended during the production or delivery of a good or…

Q: How should mixed costs be classified in cost, volume, and profit analysis?

A: Based on the cost behaviour costs are classified as fixed costs , variable costs and mixed costs.…

Q: What are the advantages and disadvantages of ABC relative to the step-down method of cost…

A: ABC means Activity Based Costing. Costs will be allocated based on the activities the organization…

Q: In CPV analysis/ marginal costing, the term contribution is used. What does Contribution mean to…

A:

Q: Explain how increasing production can increase gross profit when using absorption costing.

A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

Q: Give an example of how a manager can increase variable costs while decreasing fixed costs?

A: Fixed costs refers to those which do not change according to the change in units of productions.…

Q: Critically evaluate the concept and application of marginal costing

A: Marginal Costing :— Marginal Costing is the Part of Cost management Techniques.  Marginal Costing…

Q: How useful is cost–benefit analysis?

A: A cost-benefit analysis, commonly known as CBA, is the process of comparing the various projects and…

Q: Which of the following describes the behavior of total variable and total fixed costs when level of…

A: Different costs associated with production process are - Fixed cost and variable cost. For example:…

Q: A determination of cost savings is most likely to be an objective of a

A: The answer is as fallows

Q: What is the differential cost to produce product Zeta?

A: Given information is: Cost of producing Alpha = $23 per unit Additional cost of producing Zeta = $25…

Q: Why might the number of products in a joint - cost situation differ from the number of outputs? Give…

A: Products: Product is anything which has a worth or which is capable of being bought and sold in the…

Q: What are the different purposes for which we measure product costs?

A: Product cost: Product cost is the cost incurred to manufacture a product, it includes the material…