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Cost-volume-profit CVP analysis is based entirely on unit costs?
Wiki User
∙ 9y ago
The CVP analysis determines the changes in costs and volume that affects a company's operating income and net income. However it assumes that the sales price, variable costs and the total fixed costs per unit remain constant
Wiki User
∙ 9y ago
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How much did Chandra telescope cost?
Chandra X-Ray Observatory Cost: Development ~ $1.65 billion Launch Costs ~ $350 million Operations and Data Analysis (years 1-5) ~ $0.75 billion Operations and Data Analysis (years 6-10) ~ $245 million
What can a multiplan be used for?
The company Multiplan which is based in New York City has as its mission helping people to manage their healthcare costs. Multiplan provides services of this kind for both individuals and businesses.
What accurately describes how costs and benefits are calculated?
When a financial decision is being made, the more choices you have will help determine the best opportunity. To calculate the opportunity cost, compare each opportunity based on a similar unit of measurement. This can be cash, weight, or products. Evaluate cost by hour, day, week, or year for each option. Evaluate each opportunity by what would be gained if you chose an alternative opportunity. Add up the costs associated with each opportunity. Make your choice based on which opportunity cost is higher.
What costs more the ice or the soda?
The soda costs more not the ice.
Is a blue topaz costs more than an aquamarine?
NO generally aquamarine costs more
What is cost-volume-profit analysis based on?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
What is Profit based on?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
What is cost based on?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
What is volume Based Costing?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
What is logical decision making based on thoughtful analysis that compares the benefits and costs of an action?
Rational Choice
How CVP analysis is used in managerial accounting decision making?
Cost-Volume-Profit (CVP) Analysis considers the impact that changes in output have on revenue, costs, and net income. In applying CVP Analysis, costs are separated into variable and fixed costs. This distinction is important because, as mentioned previously, variable costs change with changes in output, whereas fixed costs remain constant throughout what is referred to as a relevant range. CVP analysis is based on the following equation: Profit = Total Revenues - Total variable costs - Total fixed costs
What is the term for logical decision making based on thoughtful analysis that compares the benefits and costs of an action?
rational planning
What is cost base?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
Comparing actual costs with standard costs is known as?
variancce analysis
What information does activity-based management rely upon?
As an overall framework, ABM relies on ABC information. ABC deals with the analysis and assignment of costs.
Compare ABC analysis with eoq method?
ABC analysis classifies items based on their importance, while EOQ (Economic Order Quantity) method calculates the optimal order quantity to minimize total inventory costs. ABC analysis helps prioritize items for inventory management, whereas EOQ helps determine the quantity of each item to order to balance holding and ordering costs efficiently.
What is the difference between standard cost and estimated cost?
Estimates are the expressions of of opinion based upon past experiences whereas the standard costs are based upon standard rate that are very carefully developed and set as scientifically as possible. However, both estimated costs and standard costs are related to future period of time but there are some significant differences between them. Some major differences between standard costs and estimated costs are listed below:1. Estimated costs are the expressions of opinion based upon experience. Standard costs are based upon standard rates that are carefully developed and set as scientifically as possible.2. Estimated costs are used by those firms that follow historical costing system. Standard costs are used by those organizations that follow standard costing.3. Estimated costs are based on actual costs and anticipated costs. Standard costs are fixed after scientific analysis of relevant cost elements.4. Estimated costs are based on approximation. Standard costs are based upon specifications.5. Estimated costs are normally used as guideline for price determination, quoting the selling price etc. Main purpose of standard costs is to serve as a tool for cost control.
