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

Coefficient of determination, Coefficient of Determination (r 2 ) If th...

Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l

Optimum cash balance - baumols model, The Baumol Model in 1952 considers ca...

The Baumol Model in 1952 considers cash management complication as same to inventory management problem. For itself the firm attempts to minimize the total cost that is the sum of

Budgetary styles, their definitions and the advantages and disadvantages

their definitions and the advantages and disadvantages

Explain product cost, Explain product cost Product costs are those cost...

Explain product cost Product costs are those costs which are associated with and directly identifiable with the product. In other words, which are assigned to the product are p

Decision making process, Decision Making Process Decision making is the...

Decision Making Process Decision making is the process of choosing among alternatives. There are 7 steps that should be followed as shown in figure below: Figure:

Accounting cycle, Accounting Cycle is the name given to the combined proces...

Accounting Cycle is the name given to the combined process of recording and processing the accounting proceedings of a company. The series of steps start when a transaction takes p

Managerial decision, Explain the practical application of differential cost...

Explain the practical application of differential costing with examples

Relevant Cost, Advantage of relevant cost

Advantage of relevant cost

Why is the activity based costing unaccepable for ex, Ask question #Miwhy i...

Ask question #Miwhy is the activity based costing unaccepable for external financial reportnimum 100 words accepted#

Battle of the sexes game, Battle of the Sexes game To understand Battle...

Battle of the Sexes game To understand Battle of the Sexes game, let’s consider a story as follows: Two players (a couple) wish to go to an event together but disagree about

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages