🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Accounting
1
answer
0
watching
78
views

5. Briefly describe the cost-volume-profit analysis model and discuss how it can be used. Also, briefly explain the limitation of basic cost-volume-profit analysis as it relates to an organization’s sales mix.

Minimum 200 words

Watch
1
answer
0
watching
78
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Casey Durgan
Casey DurganLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Process Cost Accounting & Cost-Volume-Profit Analysis

This module focuses on measuring costs in process production companies. We explain process production, describe how to assign costs to processes, and compute and analyze cost per equivalent unit. Discuss two of the three topics:

What is meant by equivalent units of production, and why are they important when a process costing system is used?

What are the four steps in accounting for production activity in a period?

Job order costing and process costing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

Cost-volume-profit (CVP)

posted Nov 28, 2016, 4:07 AM

Cost-volume-profit (CVP) analysis is a key step in manydecisions. CVP analysis involves specifying a model of therelations among the prices of products, the volume or level ofactivity, unit variable costs, total fixed costs, and the salesmix. This model is used to predict the impact on profits of changesin those parameters. Explain how changes in activity affectcontribution margin and net operating income.

SHORT QUESTIONS. PLEASE ANSWER ALL OF THEM (IN 3 TO 4LINES EACH) to get positive rating.

What is the importance of understanding the general economicenvironment and the industry situations in financial statementsanalysis?

Distinguish between horizontal and vertical analysis offinancial statement data.

What is the importance of using industry or competitor data infinancial statement analysis?

If net sales have been increasing at a reasonable rate, but netincome has been declining steadily as a percentage of these sales,what appears to be the problem?

What is cost-volume-profit analysis? What are the assumptionsand limitations of cost volume profit analysis? How can thebreakeven and cost-volume-profit analysis help the company’smanagement in carrying out its function?

Explain the significance of the margin of safety?

How is the high-low method used in segregating the fixed andvariable components of mixed costs?

How will the breakeven point for multiple product line becomputed?

What is a composite contribution margin?

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in