Maximizing revenue. Minimizing costs. Both revenue maximization and cost minimization. Achieving a desired level of sales and profits. Consistently producing sales above the breakeven level.
Question 7. Question: The CVP profit-planning model assumes that over the relevant
range of activity: Student Answer: Only revenues are linear. Only revenues and fixed costs are linear. Only revenues and variable costs are linear. Variable cost per unit decreases because of increases in productivity. Both revenues and total costs are linear.
Question 8. Question: The degree of operating leverage( DOL), at any sales volume, is
equal to: Student Answer:( Operating profit- fixed expenses) ÷ sales.
Maximizing revenue. Minimizing costs. Both revenue maximization and cost minimization. Achieving a desired level of sales and profits. Consistently producing sales above the breakeven level.
Question 7. Question: The CVP profit-planning model assumes that over the relevant
range of activity: Student Answer: Only revenues are linear. Only revenues and fixed costs are linear. Only revenues and variable costs are linear. Variable cost per unit decreases because of increases in productivity. Both revenues and total costs are linear.
Question 8. Question: The degree of operating leverage( DOL), at any sales volume, is
equal to: Student Answer:( Operating profit- fixed expenses) ÷ sales.