Continuous probability distribution, Managerial Accounting

CONTINUOUS PROBABILITY DISTRIBUTION (USE OF NORMAL DISTRIBUTION)

In reality the C-V-P variables might take any values in a continuous range. It could therefore be more appropriate to use a continuous probability distribution such as the normal distribution with an estimated mean and standard deviation. Estimates may be made of the expected sales volume, the expected selling prices, the expected variable cost and the expected fixed costs together with their probabilities.

It would therefore be possible to compute the expected profit and the likelihood that the company would break even or achieve a given target profit.

Posted Date: 12/5/2012 7:24:23 AM | Location : United States







Related Discussions:- Continuous probability distribution, Assignment Help, Ask Question on Continuous probability distribution, Get Answer, Expert's Help, Continuous probability distribution Discussions

Write discussion on Continuous probability distribution
Your posts are moderated
Related Questions
Markov Properties 1) Transition probabilities are dependent only on the current state of the system i.e. provided that the current state is recognized; the conditional probabil

Steps of Graphic Analysis There are four steps in using graph paper to study cost-volume relationships: Step 1: Compute the scale which you will use: Volume is considered

What is Costco''s Financial decisions, Centralized or decentralized?

Assumption of break even analysis The break even analysis is based upon the following assumptions : 1) All elements of cost, i.e., production , administration and selling di

Application of zero base budgeting In the following areas ZBB may be applied: 1) redundant schemes may be discontinued 2) identify the duplicate schemes and merge them in

Schedule of Non-discretionary Data: and tables, in a form that is readable and readily understood.  This worksheet is to be used to identify/capture the various non-discretionar

QUESTION 1: P A RT A You are the Cost Accountant of an industrial concern and have been assigned the duty of preparing a cost accounting system. Initially it has been de


The other source of spontaneous short-term financing is the accrued expenses which arise by the general conduct of business. An accrued expense is an expense which has been incurre

Ask question #1.The annual overhead costs for Mona Claire Holdings which has three production centres and two service centres as follows; Indirect wages and supervision Machine