Cost Accounting: Cost-Volume-Profit Analysis

All other variables remain constant. A single product or constant sales mix. Total costs and total Profits are calculated on variable costing basis. Wincate 1 answered the question on October 17, 2017 at 05:21. Previous: Provide a word which sounds the same as each of the following.? When used in cost-volume-profit analysis, sensitivity analysis. Determines the most profitable mix of products to be sold. ? All of the following are assumptions of cost-volume-profit analysis except.Assumptions Underlying Cost-Volume-Profit Analysis Assignment and Online Homework and Project Help Even if some of these assumptions are violated. cost-volume-profit analysis can still be a useful For your convenience. these relationships are summarized on the following page.All cost can be categorized as variable or fixed. Sales price per unit, variable cost 3- No production Inventory That mean production Volume equal Sales Volume. 4- One product In case of Can you explain the limitations of cost volume profit analysis? Which of the following is an assumption of...Assumption of cvp analysis may be violated in practice, the violations are usually not serious enough to call into question the basic validity of Cost Volume Profit A number of assumptions underlie cost-volume-profit (CVP) analysis: These cost volume profit analysis assumptions are as follows

CVP Analysis and Marginal Analysis Accounting... | Accounting MCQs

4. Besides volume, other elements like inflation, efficiency, capacity and technology can affect costs. 5. Impractical to assume sales mix remain constant since 6. The assumption of linear property of total cost and total revenue relies on the assumption that unit variable cost and selling price are constant.The 6-6 Three approaches to break-even analy- usual assumption in cost-volume-profit analysis sis are (a) the graphical method, (b) the equa- is All rights reserved. Solutions Manual, Chapter 6 261 Exercise 6-4 (20 minutes) 1. The following table shows the effect of the proposed change in monthly...What assumptions are inherent in cost volume-profit analysis? Since these assumptions are usually not wholly valid, why do managers still use the analysis in decision...Cost-volume-profit analysis looks primarily at the effect of differing levels of activity on the financial In performing CVP analysis, there are several assumptions made, including: Sales price per unit is The sales volume necessary in order to achive this profit can be ascertained using any of the tree...

Assumptions Underlying Cost-Volume-Profit Analysis Accounting...

the behavior of costs is curvilinear throughout the relevant range....of the following assumptions except a.the behavior of costs is curvilinear throughout the relevant range.b.costs can be classified accurately as either variable or Fixed costs are $350,000 and netincome is $250,000. What should be reported as variable expenses in the CVP incomestatement?CVP stands for the Cost Volume Profit analysis, which is defined as the situation where the companies evaluate or determine what will happen The assumptions of the CVP are: 1. Costs are linear and are designated either variable or fixed. 2. The selling price per unit will be constant and will...Cost-volume-profit analysis is invaluable in demonstrating the effect on an organisation that changes in volume However, its use is limited because it is based on the following assumptions: either a Profits are calculated on a variable cost basis or, if absorption costing is used, it is assumed that...CHAPTER 22 COST-VOLUME-PROFIT ANALYSIS Related Assignment Materials Student Learning 4. Deficiency of high-low method ignores all cost points except the highest and lowest resulting in less D. Assumptions of Cost-Volume-Profit Analysis 1. Usefulness depends on validity of three...

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