Discuss the limitations of cost volume profit analysis for planning and decision making. Nb: please do answer this question in three paragraphs.
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Discuss the limitations of cost volume profit analysis for planning and decision making.
Nb: please do answer this question in three paragraphs.
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Solved in 2 steps
- Which of the following is not one of the five steps in decision-making process? A. identify alternatives B. review, analyze, and evaluate decision C. decide best action D. consult with CFO concerning variable costsExamples of how cost–volume–profit analysis can be used for decision-making.State the uses of Marginal Costing technique in decision making process. How CVP( cost volume profit) analysis aid in the profit planning issues. - I want the answer only for the 2nd part
- .Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A.Contribution margin format B.Absorption costing format C.Single-step format D.Multiple-step formatDiscuss the merits and demerits of the cost volume profit analysis (CVP)Explain and discuss your understanding about the full cost-pricing with 3 example of its possible application
- Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A. Multiple-step format B. Absorption costing format C. Single-step format D. Contribution margin formatDiscuss the FOUR basic steps in benefit-cost analysis, which aspect of benefit-cost analysis would you consider to be the most controversial? Give reasons for your answer.What are decisions where relevant cost analysis might be used effectively, along with a description of each type of decision. MUST INCLUDE examples in your description. ANSWER THIS IN 4 paragraphs.
- 1- What potential problems should be avoided in relevant-cost analysis? 2- Describe life-cycle budgeting and life-cycle costing and when companies should use these techniques. 3- Describe three alternatives of cost-plus pricing methods? 4- Why is it important to distinguish cost incurrence from locked-in cost? 5- How do companies determine target costs?1. Provide examples of how cost–volume–profit analysis can be used for decision-making.2. Explain what is meant by the term ‘relevant range’. 3. Define the term ‘contribution margin’. 4. Define the term ‘profit–volume ratio’ and explain how it can be used for cost–volume–profit analysis. 5. Describe and distinguish between the three different approaches to presenting cost–volume–profit relationships in graphical format.Discuss the advantages and disadvantages of using a cost planning and control system based on earned value analysis (EVA) as opposed to more traditional cost planning and control approaches.