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Techniques of CVP Analysis
The CVP analysis deals with the price costs structure and the sales volume and identifies the profit figure with one or other combination of these variables . the key elements in the CVP analysis are selling price sales volume variable cost per unit total fixed costs and the sales mix (if the firm is dealing with more than one product at a time ).there are two basic techniques of CVP analysis these are :
1) The contribution margin analysis
2) Profit volume ratio
3) The break even analysis .
Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o
What are the limation of semi variable cost and how to overcome it?
In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward
Disadvantages of ratio analysis 1) False results: ratios are based upon the financial statement. In case financial ratio is incorrect or the data upon which ratios are based
interest rates
reasons for favourable or adverse variances i.e. prise usage, mix, yeild
Identify whether each of the following transactions involves spot exchange, contract, or vertical integration. For the last item if the contract length is optimal or suboptimal.
calculate formula
QUESTION 1: P A RT A You are the Cost Accountant of an industrial concern and have been assigned the duty of preparing a cost accounting system. Initially it has been de
Definition of Cost reduction Cost reduction is planned positive approach to reducing expenditure. Cost reduction exercises are planned campaigns to cut expenditure. It is a con
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