Do starting entrepreneurs need to have basic knowledge about cost volume profit analysis?

Q: Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in…

A: Cost Volume Analysis is a process of study of the relation between the costs of the product, volume,…

Q: Explain an example of profit oriented companies.

A:

Q: Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?…

A: Under CVP analysis, the effect of variable cost and fixed cost on profitability is to be determined.…

Q: The systematic examination of the relationships among selling prices, volume of sales and…

A: It is significant for every busines to analyse the quantity to be sold for achieving break even and…

Q: Does using cost volume profit sensitivity analysis have any drawbacks or possible negative impacts…

A: Cost volume profit analysis is used to control or monitor a sensitive analysis which depicts changes…

Q: Explain why is important for a business to understand their composite mix of products when…

A: Sales mix is the proportion of sales in quantity with respect to total sales quantity. It is…

Q: What is the meaning of contribution margin ratio? How is this ratio useful in planning…

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Q: Explain the concept of customer profitability analysis. Give examples of cost drivers used in this…

A: Customer Profitability Analysis is a technique of noting down and analysing various costs and…

Q: What questions should managers answer when considering selling a product as is or processing…

A: Sell or process further decision rule: Sell or process further decision rule states that "if the…

Q: How can accounting con

A: these three steps can increase the capacity of of an accounting firm. Adopt a cloud-based platform…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planning…

A: Contribution margin is the sales revenue of the business after deduction of variable costs from…

Q: What is return on investment, and how is it calculated?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What advice would you give those who want to invest in this company? (recommendations)  (based on…

A: Before investing in any companies’ securities, performance and growth is evaluated by considering…

Q: tandard cost systems provide companies with a number of advantages, argue the statement.

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Q: e target cost per unit for the new product.

A: Total Target profit Cost of investment * Desired rate of return RM400000 * 11% = RM44000…

Q: What is value-chain analysis? What role does it play in strategic cost analysis?

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Q: chicken. What is the impact on the cost? Briefly explain your steps to solve this business problem.

A: Government and industry regulations can affect the sales price of many products and services in many…

Q: Explain what cost behavious is and why it is important for business?

A: Cost Behavior is the change in the behavior of a cost (or costs) due to a change in business…

Q: List the advantages and disadvantages of different types of business. Explain the various costs…

A: Business organization refers to the formation of an entity with an objective to have higher profits…

Q: If you were a small business owner would you implement an activity based costing system? What…

A: Activity Based Costing- It is costing in which cost of overhead is assigned firstly to those…

Q: How do companies figure out past costs and the learning phenomenon that applies to them or if they…

A: Past Costs: Generally, past costs in a project refer to the money that has already been spent and…

Q: cost leadership and differenti

A: Strategy refers to the work at the business where a person should focus on his efforts to achieve…

Q: What are the factors of incremental analysis such as relevant costs, opportunity costs, and sunk…

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Q: A business that is just starting out and is uncertain about what the sales levels will be would…

A: Fixed cost is the cost that does not change with the change in the output. Whereas, variable cost…

Q: Cost Behavior - Operating leverage and profitability analysis Discuss how understanding cost…

A: Understanding cost behaviour entails comprehending how an entity's costs and expenditures affect its…

Q: Standard cost system provides companies with a number of advantage and argue the statment

A: Standard Cost:   A standard cost accounting refers to a cost accounting method used by a company as…

Q: In Classification Of Cost (Marginal costs) What Is A Business Situational Example of the ff:…

A: Cost is the amount which is spend to sold the goods or to provide the service. It is comprises of…

Q: Define productivity.

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…

Q: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

Q: What profit-based pricing approach should a manager use if he or she wants to reflect the percentage…

A: Profit grounded pricing strategy is the approach which involves setting the prices for the product…

Q: Companies benefit greatly from the use of a standard cost system, and the statement

A: This question deals with  the use of a standard cost system, and the statemen

Q: What are the benefits enjoyed by tourism firm by adopting cost accounting?

A: cost accounting -    cost accounting is the recording classifying summarizing and analyzing the…

Q: Which of the following is not a revenue driver factor which affects sales volume for a manufacturing…

A: Revenue driver factor affects the sales volume for manufacturing firms.  Management can use the cost…

Q: Why do online sellers need to have a knowledge about cost volume profit analysis?

A: An analysis used to measure the costs and determine the sales revenue of an entity so as to earn…