Scribd Logo
Upload

Welcome to Scribd!

  • 8 views

    Cost-Volume-Profit Analysis (CVPA) : J.K.Oke

    Uploaded by

    Abhishek Verma
    This document provides an overview of cost-volume-profit analysis (CVPA). It states that break-even analysis is essentially CVPA, which is a technique for analyzing the relationships between key business variables like costs, revenues, and profits at different output levels. It notes that a break-even analysis chart is a basic CVPA chart and that CVPA is useful for analyzing decision-making problems. The document then discusses key aspects of a cost structure in terms of fixed and variable costs and how they relate to product price. It also mentions other costs factors like transfer pricing, overheads, and customer-specific costs. Finally, it provides vocabulary related to CVPA, such as differential costs and revenues, opportunity costs, sunk costs

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Cost-Volume-Profit Analysis (CVPA) : J.K.Oke

    Uploaded by

    Abhishek Verma
    8 views8 pages
    This document provides an overview of cost-volume-profit analysis (CVPA). It states that break-even analysis is essentially CVPA, which is a technique for analyzing the relationships between key business variables like costs, revenues, and profits at different output levels. It notes that a break-even analysis chart is a basic CVPA chart and that CVPA is useful for analyzing decision-making problems. The document then discusses key aspects of a cost structure in terms of fixed and variable costs and how they relate to product price. It also mentions other costs factors like transfer pricing, overheads, and customer-specific costs. Finally, it provides vocabulary related to CVPA, such as differential costs and revenues, opportunity costs, sunk costs

    Original Description:

    Original Title

    5.4.2-MECO-COST-VOLUME-PROFIT-ANALYSIS

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides an overview of cost-volume-profit analysis (CVPA). It states that break-even analysis is essentially CVPA, which is a technique for analyzing the relationships between key business variables like costs, revenues, and profits at different output levels. It notes that a break-even analysis chart is a basic CVPA chart and that CVPA is useful for analyzing decision-making problems. The document then discusses key aspects of a cost structure in terms of fixed and variable costs and how they relate to product price. It also mentions other costs factors like transfer pricing, overheads, and customer-specific costs. Finally, it provides vocabulary related to CVPA, such as differential costs and revenues, opportunity costs, sunk costs

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    8 views8 pages

    Cost-Volume-Profit Analysis (CVPA) : J.K.Oke

    Uploaded by

    Abhishek Verma
    This document provides an overview of cost-volume-profit analysis (CVPA). It states that break-even analysis is essentially CVPA, which is a technique for analyzing the relationships between key business variables like costs, revenues, and profits at different output levels. It notes that a break-even analysis chart is a basic CVPA chart and that CVPA is useful for analyzing decision-making problems. The document then discusses key aspects of a cost structure in terms of fixed and variable costs and how they relate to product price. It also mentions other costs factors like transfer pricing, overheads, and customer-specific costs. Finally, it provides vocabulary related to CVPA, such as differential costs and revenues, opportunity costs, sunk costs

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 8

    COST-VOLUME-PROFIT ANALYSIS

    (CVPA)

    J.K.OKE

    PPT 14 -1
    COST-VOLUME-PROFITANALYSIS
    (CVPA)
     BREAK-EVEN ANALYSIS IS ESSENTIALLY
    COST-VOLUME-PROFIT ANALYSIS (CVPA).
     IT IS AN ANALYTICAL TECHNIQUE FOR
    TRACING RELATIONSHIPS AMONG KEY
    BUSINESS VARIABLES SUCH AS COSTS,
    REVENUES & PROFITS AT DIFFERENT
    OUTPUT LEVELS.

    PPT 14 -2
    COST-VOLUME-PROFIT ANALYSIS
    (CVPA)

     NEEDLESS TO SAY THAT BEA CHART IS A


    BASIC CVPA CHART.
     CVPA IS USEFUL ANALYSING A DECISION-
    MAKING PROBLEM.

    PPT 14 -3
    COST – VOLUME – PROFIT
    RELATIONSHIP
     KEY ASPECTS OF THE COST STRUCTURE IN
    TERMS OF FIXED COSTS AND VARIABLE
    COSTS AS A PROPORTION OF PRODUCT PRICE
    ◦ IDENTIFY ALL FIXED COSTS
    ◦ IDENTIFY ALL VARIABLE COSTS
     COSTS ARISING OUT OF TRANSFER PRICING
    MECHANISMS WITHIN THE COMPANY
     OVERHEADS
    ◦ UNDER THE SBU CONTROL
    ◦ OUTSIDE THE SBU CONTROL
     CUSTOMER SPECIFIC COSTS – IF RELEVANT

    PPT 14 -4
    Word List

     COST BEHAVIOR  MIXED COSTS.

     VARIABLE COSTS.  SEMI-VARIABLE


     VARIABLE COSTS COSTS CHANGE IN
    PER UNIT ARE TOTAL WITH
    CONSTANT. CHANGES IN
    PRODUCTION
     FIXED COSTS.
    LEVEL, BUT NOT
     FIXED COSTS PER PROPORTIONATELY
    UNIT VARY WITH .
    PRODUCTION LEVEL.

    PPT 14 -5
    Cost-Volume-Profit Diagnostics

    PPT 14 -6
    Vocabulary
    DIFFERENTIAL COSTS AND  OPPORTUNITY COSTS.
    REVENUE
    THE BENEFIT
    THE ADDITIONAL GIVEN UP BY
    COST OR REVENUE SELECTING ONE
    INCURRED WHEN ALTERNATIVE OVER
    ONE ALTERNATIVE IS ANOTHER. I.E.
    CHOSEN OVER INTEREST ON
    ANOTHER. STORED GRAIN.
    SUNK COST.

    COSTS THAT ARE


    ALREADY INCURRED
    & NOT REVERSIBLE. PPT 14 -7
    THANK YOU…..

    PPT 14 -8

    You might also like