Asked by scooby9132002

Cost-volume-profit (CVP) analysis is based entirely on unit costs.” Do you agree? Explain.
Answered by Ms. Sue
We'll be glad to comment on your answer.
Answered by scooby9132002
i have no idea.....
Answered by Ms. Sue
What did you learn in your text about CVP?

If you can't find it there, check this site.

http://en.wikipedia.org/wiki/Cost-Volume-Profit_Analysis
Answered by scooby9132002
“Cost-volume-profit (CVP) analysis is based entirely on unit costs.” Do you agree? Explain.
No I believe it is in both fixed and variable costs. Changes in activity are the only factors that affect costs.
Answered by Ms. Sue
I agree.
Answered by scooby9132002
7) . How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification?

Most of your costs are going to be semi-mixed/semi-variable. You will have to try to segregate the two types of costs, fixed and variable that's really the only way to do it. You have several options in how to separate them - either using your own judgment (i.e., work with management to determine what the cost would be if there would be no manufacturing activity?). The second method would be using statistics. Here, there are several options, like a scatter chart, regression analysis
Answered by belle
variable cost
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