Assumptions of break even analysis, Cost Accounting

ASSUMPTIONS OF BREAK EVEN ANALYSIS

1. Fixed costs for all time remain constant.

2. All costs are divided into fixed and variable costs.

3. Selling price will not alter despite competition.

4. Variable costs SVD change in direct proportion to production.

5. There is no alteration in common price level.

6. There is no alteration in operating efficiency.

7. Quantity of production is the only affecting factor.

8. Quantity of sales and volume of production are equal.

9. Only one product or sales mix is same.

Posted Date: 10/15/2012 7:00:36 AM | Location : United States







Related Discussions:- Assumptions of break even analysis, Assignment Help, Ask Question on Assumptions of break even analysis, Get Answer, Expert's Help, Assumptions of break even analysis Discussions

Write discussion on Assumptions of break even analysis
Your posts are moderated
Related Questions
9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?" a. Planning b. Performing c. Ev


contribution per unit 8 fixed cost=800.find B.E.P?

cost accounting as a descriptive/analytical discipline

Prepare a properly classified Cash Flow Statement for Sports Enterprises Ltd for the year ended 31st December 2011. Note that the Closing Cash at Bank Balance at 31st December 2011

This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? Howeve


The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30

Direct Material Price Variances The two direct material price variances can be summarized given as: From our basic data first before the beginning of the discussion on

Your company completed the East Side subdivision. The costs are shown in Figure 11-4. The site concrete labor and outside lighting were done by subcontractors. The grading and exca