COST BEHAVIOR AND COST-VOLUME-PROFIT ANALYSIS
Part 1
Ten Short-Answer Questions
Differentiate between variable and fixed costs. Describe the two major behavior patterns. What if a cost has characteristics of both patterns?
What is meant by the term break-even point? What is a potential benefit of calculating break-even?
Why is the concept of relevant range crucial for understanding fixed-cost behavior?
What is the formula for calculating the break-even point in sales revenue?
What formula is used to solve for the break-even point in units?
How can the break-even formula be altered to calculate the number of units that must be sold to achieve a desired level of income (target income)? Show the formula and explain.
What effect would you expect the mechanization and automation of production processes to have on the break-even point?
Why might a business wish to lower its break-even point? How would it go about lowering the break-even point?
Describe three ideas that can lower the break-even point and include a simple example with numbers.
Part II
Real-World Example
do some research to find a real-world example where cost-volume-profit analysis was applied or could be applied. Information can be found in the news, research papers, and on investment sites. Another option is to locate the financial statements for a company, make some assumptions, and prepare your own break-even analysis from an external point of view. Describe the situation and the results. Show computations when appropriate.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.