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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.
Semi Variable Costs Are costs along with both a fixed and variable cost component? The fixed component is such portion that is constant irrespective of the level of activity.
Describe the meaning of the fixed production overhead variances calculated under the standard absorption costing system and talk about their usefulness to the management of X Ltd.
What are investment appraisal methods when opening a new project?
Assumptions of CVP This chapter has given information on how to apply CVP for the business analysis. Most of this analysis is keyed to the model of how profitability is impacte
Purposes of Overhead Cost Analysis There are a number of situations whether the analysis of overhead costs will assist in the satisfactory evaluation of the relevant cost data
answers to figure 5 exercise 18.10
Distinction between Absorption and Marginal Costing These are two approaches of arriving at the cost of production or total profit for a specified period. The major difference
types
(a) Describe briefly how the following are used in the accounting for labour: (i) time sheets (ii) job cards. (b) The following details relate to the labour in a produ
Horton Co. was organized on January 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5-iss
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