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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 .
Q. Explain Phases of life cycle of a product? Every product move through a life cycle having five phases as shown in figure and they are 1) Pricing during introduction 2)
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The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme
tha accountant''s approach to CVP ANALYSIS HAS BEEN CRITICISED IN THATIT DOES NOT DEAL WITH THE FOLLOWING; CHANGES IN PRODUCT MIX. WHY IS IT SO?
The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.
ALGEBRAIC ANALYSIS The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study. The net cost is a semi-variable c
Explain the tools of management accounting
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