This preview shows page 1. Sign up to view the full content.
Unformatted text preview: constant, which is appropriate for small deviations from current production and sales, and assumes a clean division between fixed costs and variable costs, though in the long run all costs are variable. CVP can be used in a long-run model because it takes a period look at a product. The period can be a year and the data can then be extrapolated over the life of the product to give an estimate of the performance. Jack...
View Full Document
- Fall '10