Incorporate taxes, multiple products, and alternative cost structures into the CVP analysis. More complicated relations among costs,

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Incorporate taxes, multiple products, and alternative cost structures into the CVP analysis. More complicated relations among costs, volumes, and profits can be analyzed. With income taxes, the target profit, which is after income taxes, has to be converted to a target profit before income taxes. With multiple products, an assumption about product mix allows the application of CVP analysis by treating the multiple products as if they are a "basket" of goods. More complicated cost structures, such as step fixed costs, can be analyzed by considering costs at different volumes.
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Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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