Cvp analysis and computer applications, Managerial Accounting

Assignment Help:

CVP ANALYSIS AND COMPUTER APPLICATIONS

The output from a CVP model is only as good as the input. The analysis will include assumptions about sales mix, production efficiency, price loads, total fixed costs, variable costs and selling price per unit.

The CVP equation can be used to develop financial planning programs. These programs quickly calculate the effects of changes in price, costs and volume on an organization’s profits. They result such “what- if” questions as:

How could a 5% increase in the sales price affect operating income?
If Fast Food Co. increases its advertising budget by Sh1 million, how many hamburgers must it sell to cover the increase in fixed expenses?
iIf the campus bookstore extends its hours, how much additional revenue must it earn to cover the increased operating expense?
If variable production costs are reduced by 7%, how many units of product must be sold to earn Sh 200,000 operating profit?

Related Discussions:- Cvp analysis and computer applications

Consortium lending, Consortium Lending: As the financial needs of a singl...

Consortium Lending: As the financial needs of a single unit are more than a single bank can cater to, then more than one bank comes together to finance the unit jointly spreading

How will you develop its presentation to appropriate markets, we want to re...

we want to realize our job dreams, we need to think about ourselves as products to be marketed, and in order to do this, we need to contextualize ourselves within the five Ps of ma

Time series analysis, Conduct a time series analysis base on the three year...

Conduct a time series analysis base on the three years accounting ratios

C-v-p analysis under uncertainty, C-V-P ANALYSIS UNDER UNCERTAINTY A ma...

C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an

Learning and spillovers , Learning and Spillovers The cost of a value ...

Learning and Spillovers The cost of a value activity can decline over time due to learning that increases its efficiency. The methods by which learning can lower cost over tim

What are the disadvantages of incremental budgeting, Disadvantages of incre...

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d

Costing and Budgetory Control, Given budgeted figures and actual, then anal...

Given budgeted figures and actual, then analyses each fixed cost into its components

Homework.., Give the following cost data Costs /per unit labor … $ 4 Mate...

Give the following cost data Costs /per unit labor … $ 4 Materials …5 Fixed cost … $ 12000 Determine the break even point in units if the selling price is $ 19.00 Determine th

Describe the algebraic method of the break even point, Algebraic method of ...

Algebraic method of the break even point The break even point can be computed by the following method: a) Units of sales volume . b) Budget total or in terms of money va

Explain budgetary control according to CIMA, Budgetary control Accordin...

Budgetary control According to CIMA the establishment of budgets relating the responsibilities of executive to the requirement of a policy and the continuous comparison of achi

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages