Price factor 3 cost factor 4 volume factor 10 gross

2. Price factor.
3. Cost factor.
4. Volume factor.
10. GROSS PROFIT ANALYSIS (MULTI-PRODUCT COMPANY)
The following data were given for Vamos Company:
2009 2010
Product A Product B Product A Product B
Sales volume 6,000 4,000 3,000 5,000
Unit selling price 10 6 9 5
Unit cost 6 3 4 3
REQUIRED:
1. Overall GP variance 4. Volume factor
2. Price factor 5. Mix factor
3. Cost factor
Additional Exercises:
(Sources: CMA/CIA/RPCPA/AICPA/Various test banks)
1. In financial statement analysis, expressing all financial statement items as a percentage of base year
amounts is called
2. Horizontal, vertical, and common-size analyses are techniques that are used by analysts in
understanding the financial statements of companies. Which of the following is an example of vertical,
common-size analysis?
3. In a single-period common-size income statement, the base amount (100%) is normally the
17

4. The statement of cash flows
a. Reports the revenues earned and expenses incurred by the firm during the period.
b. Shows the company’s total assets, broken down into current and non-current assets.
c. Shows the company’s capital structure for a period of time.
d. Reports the periodic inflows and outflows in operating, investing and financing activities.
5. Under the direct method of determining net cash provided by operating activities on the statement of
cash flows, a gain on sale of plant assets would be:
6. The income statement of Jollibee Company shows operating expenses of P265. The following
information is also available:
Prepaid expenses, 1/1 P14
Accrued expenses, 1/1 40
Prepaid expenses, 12/31 21
Accrued expenses, 12/31 36
Cash paid for operating expenses was