ACCT2320 - 6.1 - 6.3

CVP analysis stands for _

CVP analysis is the study of the effects if changes in _ on a company's profits

CVP is useful for management decisions, such as:

setting _

CVP is useful for management decisions, such as:

determining _

CVP is useful for management decisions, such as:

determining product mix, and

maximizing the use of _

Assumptions of CVP Analysis

1) Behaviour of both costs and revenues is _ throughout the relevant range of the activity index

i.e can be plotted using the formula y=mx+b or TC=VC(q) + FC

Assumptions of CVP Analysis

2) Costs can be classified accurately as either _

Assumptions of CVP Analysis

3) Changes in activity are the only factors that affect _

Assumptions of CVP Analysis

4) All units produced are _

CVP income statement - for _ use