A segment of a business probably should be discontinued

Assignment Help Financial Accounting

Reference no: EM13745074

A segment of a business probably should be discontinued if;

(A) it's common costs exceed its contribution margin

(B) it's contribution margin exceeds its controllable fixed cost and it's common costs.

(D) it has a net loss

On an income statement prepared with direct costing approach, the excess of sales over the cost of goods sold, based on variable costs only, is referred to as the:

(A) marginal gross profit on sales

(B) manufacturing margin

(D) contribution margin

Reference no: EM13745074

Questions Cloud

List the dollar amount of debt disney proposed to sell : List the dollar amount of debt Disney proposed to sell to the public. Indicate whether this amount has increased or decreased from 2008 to 2010. Discuss some potential causes of this increase or decrease.

What is offshoring : You will research and find an example of a firm that is going through the transformational change of offshoring much of its production activities.

Plan to manufacture engine blocks for classic cars : The managers of PonchoParts, Inc. plan to manufacture engine blocks for classic cars from the 1960s era. They expect to sell 250 blocks annually for the next five years. The necessary foundry and machining equipment will cost a total of $800,000 and ..

Fixed manufacturing costs are written off as current expense : Fixed manufacturing costs are written off as current expenses of the period in which they occurred when using -------- costing. When inventory costing system is NOT acceptable for financial reporting purposes? Which of the following would Not be rele..

A segment of a business probably should be discontinued : A segment of a business probably should be discontinued if; On an income statement prepared with direct costing approach, the excess of sales over the cost of goods sold, based on variable costs only, is referred to as the:

While non-random variation could be affecting the process : Suppose analysis of a random sample results in an "in control" determination. Which of the following statements is most appropriate

Contribution margin is calculated by deducting : Which of the following is not consideration when determining whether to continue making a part or to buy that part. Contribution margin is calculated by deducting:

Present value-pv of multiple cash flows : Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years? (Round to the nearest dollar.)

About the limitations of financial condition analysis : Which of the following statements about the limitations of financial condition analysis is(are) most correct? Comparison with industry averages is difficult if the organization operates in several different lines of business. Seasonal factors can dis..

User Account

All Pages