effective use of the cvp (cost-volume-profit) model requires an understanding of all of the following concepts, except: a) contribution margin per unit. b) contribution margin ratio. c) contribution income statement. d) total cost ofgoods sold (cgs). e) variable versus fixed cost behavior patterns.

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25-10-2022
Business

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effective use of the cvp (cost-volume-profit) model requires an understanding of all of the following concepts, except: a) contribution margin per unit. b) contribution margin ratio. c) contribution income statement. d) total cost ofgoods sold (cgs). e) variable versus fixed cost behavior patterns.

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SakshTiwari353 SakshTiwari353 · Answer 1 · 2022-10-28T17:00:40+02:00

Effective use of the caps (cost-volume-profit) model requires an understanding of all of the following concepts, except Total cost of goods sold (CGS).

What three components make up a CVP analysis?

Finding out how changes in variable and fixed expenses will impact profitability is the goal of a CVP analysis. The three key components are price, sales volume, and cost. How these factors affect profit are examined in a CVP analysis.

What are the four guiding principles of CVP analysis?

When doing a caps analysis, the major presumptions that accountants make are that fixed costs won't vary within the relevant range of activity, all costs can be divided into fixed and variable costs, the selling price per unit won't change, and fixed costs won't change.

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