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Unformatted text preview: for
a total of $57,500. Chapter
5-21 Cost-VolumeCost-Volume-Profit Analysis
CVP Analysis - the study of the _______ _______________________________
on a company’s profits. Important in profit planning.
A critical factor in setting:
determining product mix, and
maximizing use of production facilities. Chapter
5-22 Cost-VolumeCost-Volume-Profit Analysis
CVP analysis considers the interrelationships
among five basic components: Chapter
5-23 Assumptions Underlying CVP Analysis
Behavior of both costs and revenues is linear
throughout the relevant range of the activity
Costs can be classified accurately as either variable
Changes in activity are the only factors that affect
All units ______________________.
When more than one type of product is sold, the
CVP Income Statement
Classifies costs and expenses as fixed or variable.
Reports contribution margin in the body of the
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This document was uploaded on 01/19/2014.
- Winter '14