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How does cost-volume-profit analysis

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Reference no: EM132533996

Question 1: How does cost-volume-profit (CVP) analysis and flexible budgeting can enable students to understand the different stages involved in starting up a business, projecting out results, and monitoring business performance based on the article: A Case Method Approach of Teaching How Cost-Volume-Profit Analysis is connected to the Flexible Budgeting Process and Variance Analysis

Question 2: Can you explain why relatively small changes in companies' revenues can result in relatively large changes in their earnings or losses. In other words, if a company's sales increase 12%, why do its earnings not also increase 12%?

Reference no: EM132533996

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