{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 18 - Weyg_Mgrl_4e_Ch05_SM_Final

Chapter 18 - Weyg_Mgrl_4e_Ch05_SM_Final - CHAPTER 5...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 5 Cost-Volume-Profit ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems 1. Distinguish between variable and fixed costs. 1, 2, 3, 6 1 1, 2, 3, 4, 5, 6 1A 1B 2. Explain the significance of the relevant range. 4, 5 2 2 3. Explain the concept of mixed costs. 6, 7, 8 1, 3, 4, 5 1, 3, 4, 5, 6 1A 1B 4. List the five components of cost-volume-profit analysis. 9 7 5. Indicate what contribution margin is and how it can be expressed. 10, 11, 17 6, 7 8, 9, 10, 11, 12, 13 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B 6. Identify the three ways to determine the break-even point. 12, 13, 14 8, 9 8, 9, 10, 11, 12, 13, 14, 16 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B 7. Give the formulas for determining sales required to earn target net income. 16 10, 12 14, 15 2A, 5A 2B, 5B 8. Define margin of safety, and give the formulas for computing it. 15 11 16 2A, 4A, 5A 2B, 4B, 5B © 2008 For Instructor Use Only 5-1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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 contribution margin, fixed costs, break-even point, sales for target net income, and margin of safety ratio. 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 contribution margin, fixed costs, break-even point, sales for target net income, and margin of safety ratio. Moderate 20–30 © 2008 For Instructor Use Only 5-2
Image of page 2
BLOOM’S TAXONOMY TABLE © 2008 For Instructor Use Only 5-3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ANSWERS TO QUESTIONS 1. (a) Cost behavior analysis is the study of how specific costs respond to changes in the level of activity within a company. (b) Cost behavior analysis is important to management in planning business operations and in deciding between alternative courses of action. 2. (a) The activity index identifies the activity that causes changes in the behavior of costs. Once the index is determined, it is possible to classify the behavior of costs in response to changes in activity levels into three categories: variable, fixed, or mixed.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern