Flexible Manufacturing Systems (FMS) Are Able to Perform Such Tasks

question 5

True/False

Flexible manufacturing systems (FMS) are able to perform such tasks as manufacturing one-of-a-kind products efficiently and economically through use of CAD and CAM.

Determine the break-even point in both dollar sales and unit sales within a given relevant range.

Calculate the contribution margin per unit and the contribution margin ratio.

Identify and understand the assumptions underlying standard CVP analysis.

Calculate the impact of changes in sales volume on net operating income.

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Definitions:

Cost-Volume-Profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Absorption Costing

A method of accounting that incorporates all costs associated with manufacturing, such as direct materials, direct labor, and both variable and fixed overhead, into a product's price.

Internal Management

The process and practice of effectively running an organisation by its own executives and staff, focusing on policies, strategies, and resource allocation.

External Reporting

The process of preparing and disclosing financial statements and other reports to stakeholders outside the organization.