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!
Cost-volume relationship utilization
Cost-volume-profit study is an estimating concept which can be employed in a variety of pricing circumstances. You can employ the cost-volume relationship for:
Computing item price in price analysis: Cost-volume-profit analysis supposes that net cost is composed of fixed and variable elements. This supposition can be employed to elucidate price changes and also cost changes. Since the volume being obtained raises unit costs decline. Since unit costs decline, the vendor can decreases prices and same make the similar profit per unit.
Computing direct costs in pricing new contracts: Quantity differences will frequently affect direct costs -- specifically direct material cost. Direct material needs frequently involve a fixed component for development or production operation set-up. Since that direct cost is spread over a rising volume unit costs must decline.
Computing direct costs in pricing contract changes: How will a rise in contract effort raise contract price? A few costs will raise others will not. The ideas of cost-volume-profit study can be a priceless aid in considering the result of the change on contract price.
Computing indirect costs: The principles of cost-volume-profit study can be employed in indirect cost analysis. Mostly indirect costs are fixed or semi-variable. Since overall volume rises, indirect cost rates usually decline since fixed costs are spread over a raising production volume.
C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an
When forming a company, the options are sole proprietor, partnership, and corporation. Most choose corporation. Why is the corporate form seen to be best? What rights do the stockh
The standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticipated in
According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican
C-V-P ANALYSIS – MULTIPLE PRODUCTS The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The o
Anthony''s orchard
John Doe, MD A Business Simulation This simulation covers the transactions completed by John Doe, MD, a medical service business, which began on July 1 of the current year. Dr. D
Advantages of ratio analysis 1) Helpful in financial analysis: financial analysis is easier if accounting ratios are used to analyze the different financial statement relatio
Disadvantages of participatory budgets They consume more time and therefore are more expensive The advantage of management participation may be negated by failure t
Assumptions Underlying the CVP Analysis CVP analysis as discussed above is based on certain assumptions . if these assumptions are not recognized then serious error may result
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