ACC 333 Lecture Notes - Lecture 8: Cash Flow
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M23b - cvp analysis ii - beyond breakeven rearranging for. For early stage ventures, objectives are likely to be: Getting first sales to establish a market segment is indeed interested in buying what the be is selling. Achieving breakeven profitability (after 1-2 years of operating losses) Substitute target value for nibt for quantity required to achieve target profit (quantity must cover all fc and yield desired target) Treat z like an addition to tfc that must be covered/achieved. Q(z) = (tfc + z) / ucm managing variables to help achieve. Nibt = q x (usp - uvc) - tfc. M23c - cvp analysis iii - graphical analysis graphical. Locate point on graph where total costs (tc) and total revenue intersect (tr) Tc line can be constructed by shifting tvc so it intersects. Lines for each function demonstrate behaviour vs. volume. Week 12: budgeting & control m25a: purpose and process (cid:498)start with the end in mind(cid:499) - covey.