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Q. Explain Break-even analysis?
Cost-volume-profit (CVP) analysistracks that how profit changes when there are changes insales price, variable costs, fixed costs &quantity.
It is a good illustration of "what if? "Analysis and it in particular looks at sales minus variable costs which is termed as contribution.It permits management to understand the level of sales needed to cover all costs of a project and what level of sales is required start making profits.To break even would mean that an organisation would be earning no profit and no loss.
Sales revenue = All variable and fixed cost
Main assumptions in this model are thatfixed costs, selling price and variable costs are constant.
Price and Cost information play no role in negotiated transfer prices. Do you agree? Describe.
Dividends ................ Non-operating losses not passed through P and L A/c
Distribution and Selling Cost Budget This is the forecast of all costs incurred in distributing and selling the company's product throughout the budget period. This is closel
Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi
Below find production and sales information for Herrestad Company. We will use this same company for all the SLPs in this course. Product information
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what are the advantages and disadvantages of marginal costs plus a fixed lump-sum fee?
USES O F CVP ANALYSIS 1. .It allows preparation of flexible budgets. 2. It provides help in forecasting accurate profit. 3. It aids in formulating price policy. 4
Quantitative and Qualitative Information in Accounting Systems The availability of information is the lifeblood of any type of management and cost accounting system. It is vi
(a) Calculate Mexico's producer surplus and consumer surplus in autarky. (b) Calculate the number of Mexican imports with as well as without the Tarriff. (c) Calculate Mexico
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