The cost - volume - profit analysis ( CVP ) is based on the assumption that there
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Question:
The costvolumeprofit analysis CVP is based on the assumption that there are linear relationships among all cost and revenue variables. This linearity suggests practical and conceptual limitations on the usefulness of the CVP analysis. Alternatively, cost accountants, in some companies, use the nonlinear CVP analysis that includes techniques to estimate the nonlinear revenue and cost curves. Search the Internet for information about the nonlinear model for the CVP analysis.
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Discuss and compare the linear and nonlinear CVP analysis and provide your opinion about the effectiveness of both analyses.
Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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