The reliability of cost-volume-profit (CVP) analysis depends on several key assumptions. What are those primary assumptions?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
CVP analysis depends on five primary assumption They are 1 Total sales and t...View the full answer
Answered By
Mercy Kangai
I provide creative and detailed administrative, web search, academic writing, data entry, Personal assistant, Content writing, Translation, Academic writing, editing and proofreading services. I excel at working under tight deadlines with strict expectations. I possess the self-discipline and time management skills necessary to have served as an academic writer for the past seven years. I can bring value to your business and help solve your administrative assistant issues. I have extensive experience in marketing and small business management.
4.80+
27+ Reviews
85+ Question Solved
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Managerial Accounting questions
-
Several important assumptions underlie CVP analysis. Assumptions often help simplify and focus our analysis of sales and costs. A common application of CVP analysis is as a tool to forecast sales,...
-
The assumptions of CVP analysis are so simplistic that no firm would make a decision based on CVP alone. Therefore, there is no reason to learn CVP analysis. Comment.
-
What are some important assumptions commonly made in CVP analysis. Do these assumptions impose serious limitations on the analysis? Why or why not?
-
Calculate the following ratios for both 2021 and 2020 years: current ratio, quick ratio, debt to equity ratio, debt ratio, gross profit ratio, net profit ratio, return on equity, return on total...
-
In this section, we illustrated the Kruskal- Wallis test with data on miles driven by samples of cars, buses, and trucks. The value of the test statistic K was computed on page 729 to be 9.930,...
-
In countries with a water shortage, converting salt water to potable water is big business. The standard method of water distillation is with a single-slope solar still. Several enhanced solar energy...
-
Find the positive z-score for which 70% of the distributions area lies between -z and z. Find the indicated z-score.
-
1. What forms of interpersonal power does Larry Ellison use and how does he use them? 2. How do the two faces of power relate to Larry Ellisons actions? 3. Does Larry Ellison use power ethically?...
-
Charge q 1 = 7 nC is located at the coordinate system origin, while charge q 2 = 0 . 5 5 nC is located at ( a , 0 ) , where a = 0 . 7 5 m . The point P has coordinates ( a , b ) , where b = 0 . 2 5 m...
-
Which of the following statements is true according to recent research into the frequency at which mentally healthy people hear voices? O It is exceedingly rare. O It is rare.. It is not particularly...
-
An examination of the accounting records of Clowney Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this data, recommend a likely means...
-
What does operating leverage measure, and how is it computed?
-
How might knowledge of personality theory help the chief executive to deal with the situation presented to him by Ann more effectively?
-
In the consumer buying decision process, one stage involves an evaluation of solutions. Describe the characteristics of this stage, and comment on the salespersons role in assisting the consumer with...
-
The luxury car market is fierce. Sewell Auto, among the largest car dealerships in Texas, sells luxury marquees such as Audi and Lexus and mass brands such as GMC. Sewell has 13 stores selling 14...
-
Reflect on and write down your key priorities for the semester and especially for the next month (you may use a planning app for this task). i. Keep a diary or time log for a week and record how you...
-
The following transactions were undertaken by Porschet Ltd during the financial year ended 30 June 2020 (ignore GST): 1. issued ordinary shares for cash, $1 000 000 2. purchased land to be held for...
-
Consider one new healthy habit you would like to incorporate into your daily routine. Research how you would set yourself up for success by implementing and maintaining the new habit.
-
Thomas received $30,000 in a legal settlement in 2017. The tax treatment of the item is not certain. Thomass research results were ambiguous and he is not sure if the income is taxable. Because some...
-
Economic feasibility is an important guideline in designing cost accounting systems. Do you agree? Explain.
-
What kinds of criticisms has the D8 method received?
-
Van Dyck Company has Determine that the variable overhead rate is $3.90 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 14,000...
-
The following data related to factory overhead cost for the production of 4,000 computers: If productive capacity of 100% was 6,500 hours and the factory overhead cost budgeted at the level of 5,000...
-
Diamond Software, Inc., does software development. One important activity in software development is writing software code. The manager of the Wordpro Development Team determined that the average...
-
If the nominal interest rate is 14%, and inflation is 4%, what is the real interest rate? 22.A bond investment yielded 8%. If inflation was 3%, what real return did the bond offer? 23.The following...
-
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated...
-
Discuss how communication channels have changed over the years due to technology.
Study smarter with the SolutionInn App