The typical cost-volume-profit graph assumes that profits increase continually as volume increases. What are some of the
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Question:
The typical cost-volume-profit graph assumes that profits increase continually as volume increases. What are some of the factors that might prevent the increasing profits that are indicated when linear CVP analysis is employed?
Think about market saturation, capacity constraints, labor factors (e.g., overtime, etc.), machine maintenance, etc
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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