Essay on A Presentation Report on Cost–Volume–Profit Analysis (Cvp)

2168 Words Jul 1st, 2013 9 Pages
CRAM Exclusive
Essay Sample
A presentation report on Cost–volume–profit analysis (CVP) Prepared for: Ms. Wahida Akther Lecturer Department of Business Administration Course code: ACC- 324 Course title: Taxation Prepared by: Group name: Exclusive NAME | ID | Omar Faruk | 1001010169 | Mirza Atiqul Hoque | 1001010182 | Minhaj Sultana | 1001010184 | Mushfiqur Rahman | 1001010186 | khairul Anam Choudhury | 1001010199 | Section:(D) 8th

middle of document…

* The break-even point can be found using a mathematical equation, finding the point on a CVP graph or simply by using the contribution margin technique.
* A margin of safety is also displayed, which is the amount of sales at a break-even point and the actual or expected sales for the company. Next, the income is projected for certain products, this is known as the target net income.
* The Cost-Volume-Profit Analysis then closes with reporting changes in the business environment and revisits the CVP income statement to review profit analysis and projections over a period of time.
Component of CVP analysis:
Cost volume profit analysis (CVP analysis) is one of the most powerful tools that managers have at their command. It helps them understand the interrelationship between cost, volume, and profit in an organization by focusing on interactions among the following five elements: 
1. Prices of products
2. Volume or level of activity
3. Per unit variable cost
4. Total fixed cost
5. Mix of product sold
Because cost-volume-profit (CVP) analysis helps managers understand the interrelationships among cost, volume, and profit it is a vital tool in many business decisions. These decisions include, for example, what products to manufacture or sell, what pricing policy to follow, what marketing strategy to
CRAM Exclusive
Tiger88404Deer

Related Documents

  • Cost Volume Profit Analysis Essay

    It was to either to develop ERP internally or acquire an existing company. After much analysis and deliberation Oracle decided to focus its efforts on acquiring a current market leader in ERP systems. Two options presented themselves: SAP, which Oracle soon found to be much too expensive and strong for a takeover and PeopleSoft which was the perfect candidate for a hostile takeover attempt.[4] ERP & the Role it plays in Business Enterprise resource planning is management information systems through

    Words: 1576 - Pages: 7
  • Bridgestone Behavioral Health Center: Cost-Volume-Profit (Cvp) Analysis

    Since 1985, Bridgestone has offered a continuum of outpatient services, including counseling, crisis intervention, detoxification, and methadone maintenance. The Bridgestone mission is to be a leader in healing and changing lives by providing high quality behavioral health care and rehabilitation to all individuals in need. With this mission, the Center promises to advance behavioral healthcare through the creation of innovative services and enriching the lives of patients one by one. Executive

    Words: 3378 - Pages: 14
  • Acc650 Module 4 - Cost Estimation and Cvp Analysis Essay examples

    forecast of a cost at a particular level of activity is termed: a. cost estimation. cost prediction. cost behavior. cost analysis. cost approximation. 9. Ribco Co. makes and sells only one product. The unit contribution margin is $6 and the break-even point in unit sales is 24,000. The company's fixed costs are: a. $4,000. $14,400. $40,000. $144,000. an amount other than those above. 10. Booster, Inc. recently conducted a least-squares regression analysis to predict

    Words: 1432 - Pages: 6
  • Cvp Analysis Essay

    Corporation reported the following data: Sales revenue Variable costs Fixed costs $3,600,000 1,600,000 1,000,000 If these data are based on the sale of 10,000 units, the break-even point would be: A. 2,000 units. B. 2,778 units. C. 3,600 units. D. 5,000 units. E. an amount other than those above. Answer: D LO: 1 Type: A 14. A recent income statement of Yale Corporation reported the following data: Sales revenue Variable costs Fixed costs $2,500,000 1,500,000 800,000 If these data are based on the

    Words: 8777 - Pages: 36
  • Cvp Analysis Essay

    shs 40 and contribution margin per unit by shs 40 from initial shs 50 to shs 10 i.e shs (160 – 150). So the new selling price will be shs 160 and the new contribution margin per unit will be shs 10. Therefore, Break-even point in units = Fixed costs/contribution margin per unit = shs 800,000/10 = 80,000 units. Therefore by reducing the selling price by 20% the break – even point quantity increases to 80,000

    Words: 1567 - Pages: 7
  • Cvp Analysis Bridgestone Health Centre by Ima Essay

    Maintenance is very low & is negative in Medical Somatic. This affects the contribution margin of the entire center thus reducing the profit levels of the center. * The WACM of the center is high (i.e., 70%) which indicates a low variable costs for the services provided. This also helps in analyzing each services ability to generate income & absorb fixed costs. * The fixed expenses of the center are exorbitant and are cutting into a major part of the contribution margin. * The margin

    Words: 816 - Pages: 4
  • Essay on Strategic Analysis Report

    of consumer behaviour, perception and purchasing powers are directly influencing Qantas’ diminishing profit margins alongside high operational expenditure. It is crucial for Qantas’ to optimise opportunities and manage complex trade-offs involving value chain and supply chain management (SCM) activities. Numerous mechanisms exist to maximise the differences between perceived value and actual costs of supply chain activities. The key challenges for Qantas are to conceptualise strategies that provide

    Words: 4520 - Pages: 19
  • Life-Cycle Cost Analysis Essay

    Building-related costs usually fall into the following categories: Initial Costs—Purchase, Acquisition, Construction Costs Fuel Costs Operation, Maintenance, and Repair Costs Replacement Costs Residual Values—Resale or Salvage Values or Disposal Costs Finance Charges—Loan Interest Payments Non-Monetary Benefits or Costs Only those costs within each category that are relevant to the decision and significant in amount are needed to make a valid investment decision. Costs are relevant when

    Words: 3681 - Pages: 15
  • Essay about cost and quality analysis

    homes, etc.) (Commonwealth Fund, 2012). Also, the development of the State Scorecard on Health System Performance is a program designed to assess the state’s performance on health care. The state is scored on 38 quality benchmark indicators of access, cost, quality, and health outcomes (Commonwealth Fund, 2012). The Agency for Healthcare Research and Quality (AHRQ) and the Commonwealth Fund both have designed programs based

    Words: 832 - Pages: 4
  • Lab Report Analysis Essay

    This lab is farthest from following the standard lab report format. The NETL Drilling Lab was written by the government so they may follow a stricter lab format than they teach in schools. They might make up their own order of headings and paragraphs because they are on top of the chain. * Font choice The NETL lab Report uses ten point font in Times New Roman. The Electrical Engineering lab Report uses Times New Roman as well but its double spaced and typed in twelve point font. The environmental

    Words: 1494 - Pages: 6