Answered: 1. Why is variable costing a preferred…

Business

Accounting

1. Why is variable costing a preferred managerial tool in profit planning?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 10MC: Which of the following is not a type of responsibility center? A. concentrated cost center B....

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Question

1. Why is variable costing a preferred managerial tool in profit planning? 2. What is the difference between the condensed and expanded format of contribution margin statement? 3. How is cost-volume-profit analysis different from profit planning? 4. Compare the assumptions in profit planning and cvp analysis 5. What are the four levels of learning in profit planning? 6. Present a summary of formulas/effects for each level of learning in profit planning. 7. What are the two approaches in controlling profit? 8. What are the important points to remember in preparing the breakeven point graph? The cost-volume-profit (CVP) graph?

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