Professional Documents
Culture Documents
Cost Profit and Volume Analysis
Cost Profit and Volume Analysis
Cost Profit and Volume Analysis
|
u
u
u
u
u
CVP- INTRODUCTION
m Effect of output volume on revenue, expenses and
net income.
m Product pricing
m Accepting / rejecting sales orders
m What product lines to promote?
m What level of output is required to achieve a
set level of net profit?
m Feasibility of profit plan
m Technology usage
ASSUMPTIONS OF CVP
-are cost that are not directly
associated with a particular cost object.
VARIABLE AND FIXED COST
|
o
O !"#"
$% &'(#'"#$)*'+)%
$ % ,#'"#
$'% #'#'"#$-'."-!*#-#%
$% / '"#
$% #(*#!"#$u.-
- -
+-0%
$)% '#'#+&""
$% 0#&""
$% "'"&""
,&!"#"
$% ,"!"#$)#-/#1,&#"-#+#'2%
$ % !"#$# %
$'% '#'!'#
$% '#'#3")"
$% #'#3")"
$)% '#'!"##
$% 4#'#,"
o m
â "
â 5
â "##"
'
RESULT
o 0(#*#( '"#)6"-6
6"##
o )#)"
6788"92)#
6576688"92)#
6 "##7:88"92)#
o 0(#.#u')6"92)#7;<88
"
o .(u##*")* )"
7;=
576
"##7
|
m #*# .(#)#
'"#'#'*+"#""*&
#2
m !'##( '"#)6"-6
6"###*'"
# '"#'#2
m !"#-(*)#+""""
#'"##'92
m ,#"')("
'#")#'"#'#'*+