Cost And Management Accountıng Deneme Sınavı Sorusu #1393177

The errors in the analysis can be caused due to market conditions.

Most of the fixed cost factors have the feature of semi-variable cost, which can be ignored in the analysis.

It is assumed that the total revenue and total cost are linear.

A great number of production is made.

It determines the lowest sale price of production.

Yanıt Açıklaması:

The advantages of CVP analysis for business managers are as follows (ICSI, 2017: 326):

It determines the lowest amount of production that will prevent the business to make a loss.
It determines the unit cost and the working capital needed in various amounts of production.
It evaluates the implemented managerial policies by comparing the planned and the actual breakeven point.
It helps to choose the most profitable production types and helps to generate product mix.
It determines the lowest sale price of production.
It determines the necessary activity volume to achieve profit targets.
It determines the effects of the products, their selling prices, their costs and the changes in demand on profit.
It determines the activity volume that will meet the new investments.
It helps the decisions on products to be produced, investments to be made and the sales prices of the products.
It determines the sales price that will meet the rise in activity volume.

PAYLAŞ:

Sınava Dön Hata Bildir