Cost Volume Profit Analysis

Practice Questions

CPA Business Environment and Concepts (BEC) › Cost Volume Profit Analysis

Questions
6
1

An increase in production levels within a relevant range most likely would result in:

2

ABC company is using cost volume profit analysis to determine service rates for the upcoming year. Projected costs are: Contribution margin per service performed $1,800, Variable expenses per service performed 1,000, and Total fixed expenses 360,000. Based on these estimates, what is the approximate breakeven point in the number of services performed?

3

Several surveys point out that most managers use full product costs, including unit fixed costs and unit variable costs in developing cost-based pricing. Which of the following is least associated with cost-based pricing?

4

One approach to measuring divisional performance is return on assets. Return on assets is expressed as income:

5

Which of the following ratios would be used to evaluate a company's profitability?

6

Which of the following is not an assumption of CVP analysis?

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