Uses of cost volume profit analysis, Cost Accounting

USES OF CVP ANALYSIS

1. .It allows preparation of flexible budgets.

2. It provides help in forecasting accurate profit.

3. It aids in formulating price policy.

4. It is helpful in performance appraisal/evaluation and management control.

5. It is highly useful in managerial decision making

6. It helps in determining the amount of overhead cost to be charged to various levels of operations.

Posted Date: 10/15/2012 6:58:35 AM | Location : United States







Related Discussions:- Uses of cost volume profit analysis, Assignment Help, Ask Question on Uses of cost volume profit analysis, Get Answer, Expert's Help, Uses of cost volume profit analysis Discussions

Write discussion on Uses of cost volume profit analysis
Your posts are moderated
Related Questions
This task involves the recording of non-current asset information in the general (nominal, main) ledger and other non-current asset matters. You are assisting in preparing the a

Change in Fixed Cost In graph yx shows the existing profit curve for a company along with a fixed cost OY break=-even point B, margin of safety M; profit SX whereas sales volu

A firm operates two plants with the marginal cost curves given by MC 1 = 50 + 2Q 1 , MC 2 = 90 + Q 2 . If the firm's total output must be 80 units, how much will it produce a

A corporation acquired a truck on July 1, 2012, at a cost of $162,000. The truck has a six-year useful life and an estimated salvage value of $18,000. The straight-line method of d

The following details are available from a company:                                                  2003                 2004                                      2003

The activity driver for the shipping activity is the number of orders shipped. Product A uses 20 orders and Product B uses 60 orders. Calculate the consumption ratios for each prod


What is an advantage of using absorption costing? A. It permits a business to calculate the break-even point for production. B. It permits a business to calculate the total c

what is cost audit? types of cost audit explain

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 b