im_ch05 - CHAPTER 5 Cost-Volume-Profit ASSIGNMENT...

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CHAPTER 5 Cost-Volume-Profit ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems * 1. Distinguish between vari- able and fixed costs. 1, 2, 3, 6, 8 1 1, 2, 3 1A 1B * 2. Explain the significance of the relevant range. 4, 5 2 * 3. Explain the concept of mixed costs. 6, 7, 8, 1, 3, 4, 5 1, 2, 3 1A 1B * 4. List the five components of cost-volume-profit ana- lysis. 9 * 5. Indicate what contribution margin is and how it can be expressed. 10, 11, 12 6, 7 4, 5, 6, 9, 11 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B * 6. Identify the three ways to determine the break-even point. 13, 14, 15 8, 9 4, 6, 7, 9, 10 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B * 7. Give the formulas for de- termining sales required to earn target net income. 16 10, 12 7 2A, 4A, 5A 2B, 4B, 5B * 8. Define margin of safety, and give the formulas for computing it. 17 11 4, 6, 8, 9, 10, 11 2A, 3A, 4A, 5A 2B, 4B, 5B 5-1

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ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. Simple 20 - 30 2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. Moderate 30 - 40 3A Compute break-even point under alternative courses of action. Simple 20 - 30 4A Compute break-even point and margin of safety ratio, and prepare CVP income statement before and after changes in business environment. Moderate 20 - 30 5A Compute break-even point and margin of safety ratio, and prepare a CVP income statement before and after changes in business environment. Moderate 20 - 30 1B Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. Simple 20 - 30 2B Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. Moderate 30 - 40 3B Compute break-even point under alternative courses of action. Simple 20 - 30 4B Compute break-even point and margin of safety ratio, and prepare CVP income statement before and after changes in business environment. Moderate 20 - 30 5B Compute break-even point and margin of safety ratio, and prepare a CVP income statement before and after changes in business environment. Moderate 20 - 30 5-2
BLOOM’S TAXONOMY TABLE 5-3

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STUDY OBJECTIVES 1. DISTINGUISH BETWEEN VARIABLE AND FIXED COSTS. 2. EXPLAIN THE SIGNIFICANCE OF THE RELEVANT RANGE. 3. EXPLAIN THE CONCEPT OF MIXED COSTS. 4. LIST THE FIVE COMPONENTS OF COST-VOLUME- PROFIT ANALYSIS. 5. INDICATE WHAT CONTRIBUTION MARGIN IS AND HOW IT CAN BE EXPRESSED. 6. IDENTIFY THE THREE WAYS TO DETERMINE THE
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This note was uploaded on 05/08/2008 for the course ACC 210 taught by Professor John during the Spring '08 term at South Central College: Faribault Campus.

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im_ch05 - CHAPTER 5 Cost-Volume-Profit ASSIGNMENT...

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