Explain impact of an increase in the level of activity

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Reference no: EM13137942

1.) How can CVP Analysis be used to predict future costs and profitability? Describe how CVP Analysis is used or could be used at your current employer. If you have not worked for a company that might use CVP Analysis, you may choose a well-known company and describe how you envision that company using CVP Analysis. Participate in follow-up discussion by adding to your classmates' comments. Your initial post should be approximately 250-500 words, and cite at least one reference used in preparing your response. All posts should be grammatically correct and proofread for spelling.

2.) Understanding cost behavior patterns is important to managers as they make decisions in the operation of the organization. Explain the relationship between cost estimation, cost behavior and cost prediction. Also, explain the impact of an increase in the level of activity (cost driver) on a total variable cost and variable cost per unit.

Reference no: EM13137942

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