This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Running head: COST, VOLUME, AND PROFIT FORMULAS 1 Cost, volume, and profit formulas Brittnee Volk ACC/220 September 11, 2011 Savedra Scott COST, VOLUME, AND PROFIT FORMULAS 2 Cost, volume, and profit formulas Every business needs to be profitable or at one point or another they will fail. Accounting has a big hand in determining if the business will be successful and continue to be successful. By using formulas to calculate the exact numbers it will help with the actions the business will need to perform to continue with the goals the business has set. The accounting department is the ones that will look at cost, volume, profit analysis and focus on the components that will change the businesses profits and losses. There are five components that make up the cost, volume, profit analysis, they are: unit selling price, variable cost per unit, total fixed cost, sales cost and volume of activity. Volume of activity, also known as the level of activity, is the total products sold. The unit selling price is the activity, also known as the level of activity, is the total products sold....
View Full Document
This note was uploaded on 11/06/2011 for the course ACCT 231 taught by Professor Shan during the Spring '10 term at Allen University.
- Spring '10