Which of the following underlying assumptions form(s) the basis for gross profit variance analysis? A. In multi-product organization, the sales mix remains discretionary. B. Sales and costs behave in ainear manner C. All of the choices are assumptions that underlie gross profit variance analysis D. Costs can be categorized as variable

Q: Explain who is in the best position in the organization to influence each of these variances.   a.…

A: Variance is a term used for measurement of variability. It computes the difference between the…

Q: Which of the following is a limitation of the gross profit variance analysis? a. The level of…

A: Gross profit variance analysis refers to the analysis which dealt with how to analyse the profit…

Q: Why do we need to have a "base" for the computation of different types of variances under gross…

A: Gross Profit: It is calculated by subtracting operating expenses from the operating income for the…

Q: gross profit variance analysis is most correct?

A: b. All of the choices are correct.

Q: Define sales volume variance.

A: Sales volume variance (also known as sales quantity variance) occurs when the actual quantity of…

Q: What are the other external factors that affects the variance of a company's gross profit?

A: The difference between sales and the cost of goods sold results in the gross profit. This figure…

Q: How do you make a decision in case of special order? Explain. Use examples if required.

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Which of the following statements is false? * The quantity factor refers to the change in the number…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: The following are seven technical terms introduced in this chapter. Spending variance Materials…

A:

Q: Examine the main reasons why manufacturing companies are more sensitive to material price variances,…

A: (a) The main reasons why manufacturing companies are more sensitive to material price variances, as…

Q: Which of the following statements is false? a. The sum of the cost price variance and cost volume…

A: In general terms, Variance refers to the spread between the numbers or the relationship existing. It…

Q: Determine the following: Sales price variance Sales volume variance Sales variance

A: Sales price variance = (Unit selling price 2021 - Unit selling price 2020)*Units sold 2021

Q: Why do financial managers need to break down the components of the gross profit variances? Why do we…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: (a) Prepare a standard costing profit statement, and a profit statement based on actual figures for…

A:

Q: Required: Prepare a profit variance analysis. (Indicate the effect of each variance by selecting "F"…

A: Manufacturing Variances = Actual cost - Flexible Budget cost Sales Price Variance = Actual Sales -…

Q: Which of the following statements is false? * . The sum of the sales price variance and sales volume…

A: Statement 1 is true. Sales value variance is equal to sum of Sales price variance and Sales volume…

Q: For a multi-product company, the sales volume can be divided into the sales mix variance and sales…

A: Sales volume variance is difference between actual and expected numbers of unit sold at Budgeted…

Q: Show how managers can gain insight into the causes of a sales-volume variance by subdividing the…

A: Sales Volume Variance:The sales volume variance is the difference of budgeted amount and the actual…

Q: Explain what is meant by the term management by exception. What is the relationship between the…

A: Management by exception: Under this style of management, employees are allowed to take decisions…

Q: Identify the cause of an unfavorable variance in profit. a.Actual labor cost is lower than budget…

A: The variance is the difference between the actual data and standard output of the production.

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit variance analysis is defined as the one which analyse the profit variance that comprise…

Q: How can HEB grocery benchmarks be determined when evaluating variances from standard costs.

A: Variance of the standard cost is the difference between the standard cost and the actual cost.…

Q: Instructions: Designate whether each of the following statements is true or false by circling the T…

A: 1. If actual costs are less than standard costs, the variance is favourable. Solution: True…

Q: Cite a specific example of the application of gross profit variance analysis. How will it help the…

A: Variance analysis for any variable enables the entity to break down the variable and establish…

Q: Which of the following is not a reason standard costs are separated into two components?…

A: Standard cost: In the accounting records, the term standard cost refers to the practice of…

Q: What are the relations among standard costs, flexible budgets, variance analysis, and management by…

A: Budgetary control focus on profits maximization of the enterprise and to accomplish this purpose,…

Q: When management uses variance reports to evaluate cost control, they look into which of the…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: volume variance

A: Sales volume variance measures the difference between the actual units sold and the budgeted units…

Q: 1. Explain the total sales volume variance for a period. How can this total variance be…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Flexible-budget variance, sales-quantity, market-size, and market-share variance. The actual…

A: Sales Variance:The sales variance is the difference of budgeted amount and the actual amount. The…

Q: In gross profit analysis, a favorable cost of sales variance that includes an unfavorable cost…

A: A favorable variance happens when the cost to produce is less than the budgeted cost. It means a…

Q: What are the relations among standard costs, flexible budgets, variance analysis and managment by…

A: Because actual costs cannot be predicted in advance, standard costs are estimations of actual costs…

Q: Which of the following statements is incorrect with regards to production variances?   Select…

A: Production variance refers to form of measure which is used to compute the cost of production of…

Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…

A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…

Q: Which of the following items would be useful to management in deciding whether to investigate the…

A: Standard costs are the budgeted costs related with the production, manufacturing and selling of…

Q: Which of the following statements is false? a. The sum of the sales volume variance and cost volume…

A: Statement (a) is false among all four because- The sum of sales quantity variance and sales mix…

Q: a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating…

A: The question is based on the concept of Cost Accounting.

Q: Which of the following statement(s) is/are true regarding standard costs and cost variances?

A: In standard costing, experts set standard for production, labor, overhead, sales and profit. Using…

Q: Determine the following: Sales price variance Sales volume variance Sales variance Cost price…

A: Standard costing is the costing method, where standard or expected costs are used in calculating…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…

Q: To reconcile budgeted profit to actual profit under marginal costing, which variances must be…

A: Marginal Costing is a method of costing, where the marginal cost, the variable cost is charged to…

Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…

A: The difference between the actual cost or price and the budgeted (standard) cost or price is…

Q: Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability of…

Q: In performing Variance Analysis for Direct Material costs, the variances include Price and Rate…

A: While performing Variance analysis for Direct Material Costs include Direct Material Price Variance…

Q: Prepare a sales activity variance analysis for Osage, Inc. (Do not round intermediate calculations.…

A: In the above question we have asked to prepare Sales Activity Variance of OSAGE, INC. on the basis…

Q: Gross profit variance analysis can be used to study the effect of:    a. Changes in cost of goods…

A: Gross profit is the gross income/revenue left after deducting the cost of goods sold from the net…

Q: Which of the following statements is false?   Standard costs (e.g., how much should be paid for…

A: Statement 1 is true, because standard costs are considered as benchmarks for measuring performance.