Question: Why should managers create a CVP graph
Why should managers create a CVP graph?
Answer to relevant QuestionsWhen considering a CVP graph, how is the break-even point shown?Why is sales mix important to multiproduct CVP analysis? Explain how sales mix is factored into CVP analysis. Explain opportunity cost and list two opportunity costs of your decision to enroll in classes this semester.In preparing a cash budget, why must an adjustment be made for depreciation expenses?Briefly describe the two types of standards on which a standard cost system relies.
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