In discussing BEP or CVP analysis, why is it necessary to assume that all units produced by

Question:

In discussing BEP or CVP analysis, why is it necessary to assume that all units produced by the company are also sold? What difficulties would be caused in the BEP or CVP calculations if units were produced but not sold?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Core Concepts of Accounting

ISBN: 978-0470499474

2nd edition

Authors: Cecily A. Raiborn

See More Books

Question Posted: Mar 27, 2015 06:56 AM

See More Questions

Should dissatisfied consumers have the right to establish gripe sites that use the trademark of the offending company in the domain name? How likely is it that consumers will be confused as to the...
In Exercise 12.4, is it necessary to assume that the events are independent? What other assumption could be made?
Why is it necessary to count inventory when a perpetual inventory control system is used? Explain. Why is it necessary to count inventory when a periodic inventory control system is used? Explain.
The graph of f(x) = ax 2 + bx + c is shown in the figure. Solve each inequality. (a) f(x) < 0 (b) f(x) = 0 I 3 -y=f(x)
Why is financial planning more important for women than men?
Since he only smokes occasionally, he would like to omit this information from his life insurance application. Advise Dave on this course of action.
A wire is coiled in the shape of a helical spring with closely spaced turns. (a) When current is passed through it, does the coil tend to lengthen, shorten, or stay the same length? (b) Does your...
Sears, Roebuck and Co. promised to give Forrer permanent employment. Forrer sold his farm at a loss to take the job. Shortly after beginning work, he was discharged by Sears, which claimed that the...
1. What is a data structure? 2. Why do we need data structures? 3. List some common data structures. 4. How data structures are classified? 5. Differentiate linear and non-linear data structure.
Change Purse Inc. is a small business that is planned to be located in a small Nova Scotia town. The town was incorporated in 1889 and, like many communities in Nova Scotia, it prides itself on being...
Discuss the realism of the underlying assumptions of break-even analysis (that is, how likely it is that the assumptions will hold in reality).
What is contribution margin , and why does it uctuate in direct proportion with sales volume? To what does a contribution margin contribute?
(a) Sketch the two structures that describe most four coordinate complexes. (b) In which structure are isomers possible for complexes of formula MA 2 B 2 ?
Rami is the better economist because he understands the concept of comparative advantage. George has a lower opportunity cost of washing windows (2.5 cookies per window) compared to Rami (8 cookies...
Examine the influence of European media and economic policies on how the textile industry is portrayed and understood. Highlight how the media often focuses on Western fashion trends, and economic...
Find the World Bank World Development Indicators on-line by going to the 'databank' and clicking more indicators. There are two GDP per capita indicators that are calculated using purchasing price...
The market demand for laptops is P=32-2Q and the market supply is P=8+2Q. What is consumer surplus at the market equilibrium?
Please create a PowerPoint of 5-8 slides that provide an overview of your progress on your final case review paper and upload this as an attachment. (1) You should have the company that you have...
Discuss the major classes of organizational development interventions. What are the goals of each? Which interventions are likely to have the most lasting effects? ORGANIZATIONAL DEVELOPMENT...
A business had revenues of $280,000 and operating expenses of $315,000. Did the business (a) Incur a net loss (b) Realize net income?
Sepchek Oil Field Services is considering the installation of a new electronic surveillance system for its warehouse. The system has an initial cost of $ 160,000 and an expected life of five years....
You just invested $ 80,000 in a mutual fund account that guarantees to pay you 6 percent interest, compounded annually. At the end of five years, how much money will have accumulated in your...
Joey Hernandez was reprimanded by the home office for recommending a pollution abatement project because the project did not meet the standard financial criterion of an 8 percent rate of return....
Pangasa Co. paid its annual worker accident insurance premium of $48,000 on its manufacturing facility in January. The company expects two worker accidents to happen during the year, and to make...
3. The game of baseball is often analyzed using Markov models. The state of the game can be represented by listing bases that have runners and keeping track of how many outs there are. There are...
Thornton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials...

In discussing BEP or CVP analysis, why is it necessary to assume that all units produced by

Question:

Step by Step Answer:

The assumption that all units produced are sold ignores the fact that a co...View the full answer

Core Concepts of Accounting

Students also viewed these Managerial Accounting questions