Limitations of CVP Analysis

The make use of the basic CVP model is just only relevant to planning and decision-making in an activity range whether the basic cost and revenue behavior suppositions are valid. Outside the relevant range, CVP methods may still be applied so long as the varying or changeable cost and revenue nature patterns are taken as consideration.

Conversely, the limitations o CVP analysis is in fact its assumptions that do not hold outside the relevant range.

Posted Date: 2/7/2013 1:19:55 AM | Location : United States

Ask an Expert

Related Discussions:- Limitations of cvp analysis, Assignment Help, Ask Question on Limitations of cvp analysis, Get Answer, Expert's Help, Limitations of cvp analysis Discussions

Write discussion on Limitations of cvp analysis
Your posts are moderated

Write your message here..

Related Questions

Case study, Ask q6) The Net Sales revenue reported is derived from the sale... Ask q6) The Net Sales revenue reported is derived from the sale of products. Each year Findley records from cash sells, sells on account and completed purchase orders. During 2016

Prepare the general journal entry to record this requisition, Erlander Comp... Erlander Company uses a job order cost accounting system. On November 1 2013, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepar

What are variable costs, Variable costs are the cost that are directly prop... Variable costs are the cost that are directly proportionate with the quantity of manufacture and or directly associated with the service.

Accrued liabilities, Accrued liabilities show expenses or obligations incur... Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where

Operation and design of cost accounting systems, Operation and Design of Co... Operation and Design of Cost Accounting Systems A number of features should be taken into account previously to finalizing the design of a cost and management accounting syste

Why communities begin using fca, Q. Why communities begin using FCA? Th... Q. Why communities begin using FCA? There are several reasons why communities start by means of FCA. For instance: • To elucidate more evidently MSW costs to people. • It is

Limitations of standard costing system, The use of standard costs can prese... The use of standard costs can present a number of potential problems or disadvantages. Most of these problems result from improper use of standard costs and the management by excep

Answer, Chen Enterprises purchased 67,000 pounds (cost = $616,400) of direc... Chen Enterprises purchased 67,000 pounds (cost = $616,400) of direct material to be used in the manufacture of the company''s only product.

Estimate finished goods cost of goods sold , ln an attempt to conceal a the... ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion left only fragments o

What is chargeback, A process in the industry where a wholesaler needs an a... A process in the industry where a wholesaler needs an amount that is the difference among the manufacturer's price to the wholesaler and the contract price to the resale customer.