Limitations of cvp analysis, Cost Accounting

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







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
Related Questions
Budgeted direct labour cost 75000 hours @ $16 per hour Budgeted manufacturing overhead 80 000 hours @ $17.50 per hour Actual direct labour cost $997 500 Budgeted manufa

West Industries is a highly decentralized corporation with independent operating divisions. Each division is evaluated and rewarded based on its total net income. One of the divisi

Material Cost Control Therefore Materials form an important cost of output units and that should be controlled.  Material Control is more than merely recording the accounting

Daisy Ltd has a net profit after tax of $3 400 000 for the year ending 30 June 2012.  For the entire financial year Daisy Ltd had two million $1.00 cumulative preference shares on

Example B & B Mechanical Repairs is a small, family owned partnership that specialises in the servicing and repair of motor vehicles. The business employs three qualified mecha

You are considering starting a walk-in-clinic.  Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor

list and explain all the procedures of material control

Overhead Costs Introduction Overhead costs may be defined like the net cost of indirect materials, indirect expenses and indirect labour. They may happen or be charged to

Cash Budget - Budgetary Planning and Control This can records the cash outflows and inflows that are expected to take place in respect of every functional budget. This may be