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Limitations of CVP Analysis
The make use of the basic CVP model is just only relevant to planning and decision-making in an activity range whether the basic cost and revenue behavior suppositions are valid. Outside the relevant range, CVP methods may still be applied so long as the varying or changeable cost and revenue nature patterns are taken as consideration.
Conversely, the limitations o CVP analysis is in fact its assumptions that do not hold outside the relevant range.
Important Aspect Regarding to Service Cost Centres The basis selected should be one that is judged to be the mainly equitable way of sharing the service costs of department
WHAT IS VARIABLE COST
DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti
On January 1, 2012 Morgan's Motors issued $500,000 of 3-year, 8% bonds when the market yield was 6%. The bond agreement stated that compounding was semi-annual with payments due on
Last in first out or LIFO LIFO is based upon the assumption such the stock purchased last is issued first. Stock valuation should here be based upon the prices ruling on acqui
responsibility of director of finance and logistics
How do I figure the estimated activity and estimated allocation base?
A provision must be made in advance for those debts whose recovery is uncertain and to writing off bad debts. Each enterprise, depends on their past experience, make a provision fo
Marginal Cost Marginal cost is the change in a firm's cost of production. It is related to a unit change in its output, or the added cost of producing the next unit. The margin
QUESTION 1: PART A Swatathon Inc. has two production departments (A and B) and two service departments (maintenance and stores). Details of next year's budgeted overheads
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