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Identity and critically examine the underlying assumptions

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Reference no: EM131480970

Question 1:

Shown below is a typical cost-volume-profit chart:

Required:

i.) Explain to a colleague who is not an accountant the reasons for the change in result on this cost-volume-profit chart from a loss at a point (a) to a profit at point (b).

ii. Identity and critically examine the underlying assumptions of this type cost-volume-profit analysis and consider whether such analyses are useful the management of an organisation.

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The said paper is in relation to the analysis of CVP graph.He we are require to discuss the changes in revenue and profit with the movement of a given point in the CVP graph.Moreover, the importance of CVP has been discussed.

Reference no: EM131480970

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