answer the following questions 362
Participation Exercise #7: After reading the article from the link below, please respond to the following questions.
http://www.powerhomebiz.com/vol15/3indicators.htm
1: Explain why calculating a “break-even†point should be the first step for any potential business.
2: What options are available if the initial break-even calculations show that the company will be performing “below†the break-even point? Please explain.
Participation Exercise #8: After viewing the 5-minute video from the link below, respond to the following question:
http://youtu.be/ZihWEVWCJYk
– What factors can impact the break-even point? Explain?.
Participation Exercise #9: After viewing the video from the link below, please respond to the following questions:
http://youtu.be/XYsmT8A-e08 (Links to an external site.)
– What are “common” fixed costs not allocated to segments? Can you think of any segments that have been eliminated from companies that you are familiar with (products, etc.). I was shopping for a small truck recently and noticed that Mazda had eliminated economy trucks from their product line. Their small truck product line must have had a negative ‘segment margin”.
Participation Exercise #10: After listening to the “professor” in the video from the link below, respond to the following questions:
http://youtu.be/gHQPl8uC2r8 (Links to an external site.)
– Why is “absorption” costing acceptable under GAAP (Generally Accepted Accounting Principles”) and not variable costing?
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