Why does the accountant use a linear representation of cost and revenue behavior in CVP analysis? How

Question:

Why does the accountant use a linear representation of cost and revenue behavior in CVP analysis? How is this justified?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

See More Books

Question Posted: Apr 25, 2012 07:44 AM

See More Questions

Why does the accountant record closing entries at the end of a period?
Matching graphs with descriptions of cost and revenue behavior. Given here are a number of graphs. The horizontal axis represents the units produced over the year and the vertical axis represents...
Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel The purpose of this integrated exercise is to demonstrate the interrelationship between cost estimation techniques and subsequent...
The _________ is a checklist that is best suited for property and tangible asset tracking. Perils analysis Industry list List of assets The activity list
The 2013 financial statements of the Department of Veterans Affairs (VA) contained the following excerpt from a note entitled "Veteran Benefits: Certain Veterans, who die or are disabled from...
How will you use the tools available to you in your store to appeal to your customer's evaluation style? The tools available to you in your store: photos videos online reviews from other stores...
Given that write-downs decrease reported net income, why would management be motivated to write down impaired assets?
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory? 1. Salaries for assembly line inspectors. 2. Insurance on factory...
Locate any points of inflection. Enter only the x-value of the solution! Enter if there is no inflection point. -f(x)=-3x-27x2+2x+5
Patient WS was tested on a simple spatial task requiring him to say whether a square was at the top, middle, or bottom of a tall rectangle. Results indicated that the process of determining the...
Why might the operating profit calculated by CVP analysis differ from the net income reported in financial statements for external reporting?
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...
The prices of ski rental packages from Gold Medal Sports are shown in Table 12 for various numbers of days. Let p be the price (in dollars) of a ski rental package for n days. a. Construct a...
Suppose there are only two types of goods being produced in Peru: Vegetables and Plastic Cups. Suppose the Vegetables are produced with labor and land while the Plastic Cups are produced with labor...
Discuss how you will use what we learned in the course in a professional setting. What did you learn that you will find particularly helpful in your future? What websites or sources did you find...
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year FA FB 2017...
Consider the following information on large-company stocks for a period of years. Arithmetic Mean Large-company stocks Inflation 11.9% 3.3 a. What was the arithmetic average annual return on...
Prepare the following a. The Statement of Profit and Loss for the year ending December 31, 2020 ( 27 marks ) b. The Statement of Financial Position at at December 31, 2020 The following trial balance...
Which one of the following best describes the strategic approach your company is taking in trying to compete successfully on an international basis? Multidomestic or think-local, act-local approach....
The diagram shows the two forces acting on a small object. Which of the following is the resultant force on the object? A. 8 N downwards B. 8 N upwards C. 2 N downwards D. 2 N upwards 3 N 5 N
Define a function called sumsquares that takes two integers as a parameter and computes the sum of square of numbers from the first number to the second number.
What is the difference between outlay cost and opportunity cost?
Provide a business example illustrating opportunity costs.
Is cost-of-goods sold an expense?
f(x) = x In(2x) Find f(x) for the function below....
Explain the importance of leadership to a team. Explain leadership practices you incorporated into your leadership style. Provide examples of how you incorporated those leadership practices within...
The severity of many sports injuries is related to the magnitude of the acceleration that an athlete's body undergoes as it comes to rest, especially when joints (such as ankles and knees) are not...

Why does the accountant use a linear representation of cost and revenue behavior in CVP analysis? How

Question:

Step by Step Answer:

The accountant makes use of a linear representation to simplify the analysis of costs a...View the full answer

Fundamentals of Cost Accounting

Students also viewed these Managerial Accounting questions