Chapter 18 - Weyg_Mgrl_4e_Ch05_SM_Final

Chapter 18 - Weyg_Mgrl_4e_Ch05_SM_Final - CHAPTER 5...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 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 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 2030 2A Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. Moderate 3040 3A Compute break-even point under alternative courses of action. Simple 2030 4A Compute break-even point and margin of safety ratio, and prepare CVP income statement before and after changes in business environment. Moderate 2030 5A Compute contribution margin, fixed costs, break-even point, sales for target net income, and margin of safety ratio. Moderate 2030 1B Determine variable and fixed costs, compute break-even point, prepare a CVP graph, and determine net income. Simple 2030 2B Prepare a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. Moderate 3040 3B Compute break-even point under alternative courses of action. Simple 2030 4B Compute break-even point and margin of safety ratio, and prepare CVP income statement before and after changes in business environment. Moderate 2030 5B Compute contribution margin, fixed costs, break-even point, sales for target net income, and margin of safety ratio. Moderate 2030 2008 For Instructor Use Only 5-2 BLOOMS TAXONOMY TABLE 2008 For Instructor Use Only 5-3 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....
View Full Document

This note was uploaded on 07/16/2010 for the course ACCT 2302 taught by Professor Dr.winking during the Spring '10 term at Tulane.

Page1 / 44

Chapter 18 - Weyg_Mgrl_4e_Ch05_SM_Final - CHAPTER 5...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online