acc - 220 - week 6 Cost, Volume, and Profit Formulas

acc - 220 - week 6 Cost, Volume, and Profit Formulas -...

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Cost, Volume, and Profit Formulas With any business, the key component is cost-volume-profit analysis. With cost-volume-profit analysis, it effects of changes in costs and volume on a business’s profits. Within this paper, I will try to discuss each one of the workings of cost-volume-profit, contribution margins, and contribution margin ratios are (Kimmel, Weygandt, & Kieso, 2003). When the selling cost rises and affects the sales, which can be affected by fixed cost, declining can be explained by the contribution margins and contribution margin ratios. There are several different cost-volume-profit analysis, which includes mixed costs, fixed costs, selling price, variable costs, and volume of activity. The mixed costs include fixed and variable components. If you would compare a gas bill since the bill has a base fee for utilizing the service, which is considered a fixed cost, and the charges the business for how much gas you use is considered a variable costs (Kimmel, Weygandt, & Kieso, 2003). The fixed costs include costs,
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This note was uploaded on 12/12/2011 for the course ACC 220 220 taught by Professor Aliciahubbard during the Winter '10 term at University of Phoenix.

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