Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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 impacted by alteration in the business volume. Like most of the models, there are number of inherent assumptions. Violating the suppose has the potential to undermine the conclusions of the model. Some of these assumptions have been touched in the whole chapter:
1. Costs can be segregated into the set and the variable portions
2. The linearity of costs is preserved over the relevant range (such as variable cost is constant per unit, and fixed cost is constant in total.
3. Revenues are stable per unit and multiple-product firms meet the expected product mix ratios
One extra assumption is that inventory levels are fairly constant, with the number of units produced equalling the number of units sold. If inventory levels vary, some of the variable and set product costs might flow into or out of inventory, with the variety of potential impacts on the profitability.
Stages of Implementation of Zero Based Budgeting 1. Definition of decision package. It is the comprehensive description of the organizations activities or functions.
The following standard costs were developed for one of the products of Ferrars Company: Standard Cost Card Per Unit Materials: 4 feet x $14.25 per foot $ 57.00 Direct labor: 8 hour
Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000. (1) Use t
describe the procedures involved in payroll labour cost accounting
1. A country has the per-worker production function y t = 6 k t 0.5 where y t is output per worker and k t is the capital-labor ratio. The depreciation rate is 0.1 and t
Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi
On January 1, 2013, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the gr
Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share
Elements of Manufacturing costs Manufacturing costs are the costs incurred to create a product. Keep in mind for a product that refers to both services and goods. The ele
Two firms compete in a homogenous product market where the inverse demand function is P = 10 - 2Q (quantity is measured in millions). Firm 1 has been in business for 1 year, while
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd