CVP Analysis in Situations Subject To Change

Revenue and Cost will change and also sales volume because of a number of factors involving:

a) Increased competition may need selling price discounts to stimulate demand

b) Overhead costs, wage rates and material prices may all change since of the impact of inflation

c) Material usage may change whereas scrap is expected to fall due to improved methods, better material quality or better trained workers

d) Labour efficiency may change whereas improved training programs or a reduction in labour turnover is expected to happen

e) Overhead expenses may fall because of more efficient placement of order along with suppliers who offer best terms

f) Product mix may change either like part of overall company strategy or because of increased competition

Posted Date: 2/7/2013 12:53:15 AM | Location : United States

Ask an Expert

Related Discussions:- Cvp analysis in situations subject to change, Assignment Help, Ask Question on Cvp analysis in situations subject to change, Get Answer, Expert's Help, Cvp analysis in situations subject to change Discussions

Write discussion on Cvp analysis in situations subject to change
Your posts are moderated

Write your message here..

Related Questions

Participation - behavioural aspects of standards, Participation - Behaviour... Participation - Behavioural Aspects of Standards It has already been pointed out in the previous paragraph such standard costing systems would be more acceptable whether the e

Activity Based Costing, How do I figure the estimated activity and estimate... How do I figure the estimated activity and estimated allocation base?

Cost concepts / classification of costs, COST CONCEPTS / CLASSIFICATION OF ... COST CONCEPTS / CLASSIFICATION OF COSTS 1. According to functions Administration cost / office cost Selling cost Production cost / factory cost / manufacturing c

Cost Accounting, What is cost accouting What is cost accouting

Basic earnings per share, What are 'potential' ordinary shares?  In your an... What are 'potential' ordinary shares?  In your answer provide three examples to support your explanation.  Briefly outline the process (steps) to determine whether 'potential' ordi

Ow much overhead will be assigned to each sailboat produced?, ShipShape Com... ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

introduction of internal rate of return , Introduction of Internal Rate of... Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

Cash, This is difficult to perceive cash maintained in the vault as an inve... 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

Zero based budgeting, Zero Based Budgeting It is referred to also lik... Zero Based Budgeting It is referred to also like priority based budgeting. It is a cost advantage approach budgeting where it is assumed that the cost allowance is Zero for a

Estimate the manufacturing cost for bearing housing, Estimate the manufactu... Estimate the manufacturing cost for a bearing housing following the Formula Student Costing Scheme.  Dimensions and materials of the bearing housing will depend on your student