QUESTION ONE: COST–VOLUME–PROFIT (CVP)
ANALYSIS
(a) Identify the SIX underlying assumptions of
cost–volume–profit (CVP) analysis.
(b) Select ANY THREE assumptions given in (a) and discuss the
difficulties that could arise in CVP analysis if these assumptions
do not hold.
QUESTION TWO: PUTTING ACCOUNTING DECISIONS IN
CONTEXT
(a) Describe TWO financial and TWO non-financial performance
indicators which may be useful for users of the reports of a public
benefit entity (e.g. a museum).
(b) If you were a member of the...
Cost-Volume-Profit Analysis: Analyze cost behavior in relation
to changes in volume. Define contribution margin and its use in
computing operating income. Discuss cost-volume-profit (CVP)
analysis and how it is used as a decision too.
How would a business use cost-volume-profit (CVP) analysis? What
are the assumptions of CVP analysis? Are these assumptions valid?
Can CVP analysis be used for multiple products?
Cost-volume-profit [CVP] analysis is a widely used, basic
business model. Discuss the underlying assumptions made in the
application of the model and whether these limits the usefulness of
the model. Would you rely on the model?
Write about 150 words.
Cost-volume-profit [CVP] analysis is a widely used, basic
business model. Discuss the underlying assumptions made in the
application of the model and whether this limits the usefulness of
the model. Would you rely on the model? Why or why not?
TOPIC
COST VOLUME PROFIT ANALYSIS
ASSIGNMENT
DIRECTION &
REQUIREMENT/S
(Identify the ILOs to be assessed at the end of each
requirement. Include the rubric or marking scheme for each
item/requirement.)
This is an individual activity given to the students to do
independently and submit their answer. Answer the question based on
the understanding of the topics discussed and problems solved in
the class lectures.
Question/Problem Solving:
Ahmed WLL produces and sells tables. The company sells total of
5000 tables in...
How
apple would use a cost-volume-profit analysis for one of its
products. No calculations are necessary; just provide an
explanation of how the process works. This section of the paper
should be one to two pages. with sources
Chapter – Cost/Volume/Profit
Explain the meaning of fixed, variable, and semi-variable
expenses.
In a cost/volume/profit analysis, what is the profit number if
you are computing a breakeven point (I will allow a one word answer
here).
What are the limiting assumptions with a cost/volume/profit
analysis?