financial and managerial accounting（下）

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1、c19CostVolumeProfit.inddPage9609/26/119:49AMuser-F409/Users/user-F409/Desktop96019Cost-Volume-ProfitCost-Volume-ProfitAnalysisCost-volume-profit(CVP)analysisisthestudyoftheeffectsofchangesincostsandvolumeonacompany’sprofits.CVPanalysisisimportantinprofitplanning.Italsoisacriticalfactorinsu

2、chmanagementdecisionsassettingsellingprices,determiningproductmix,andmaximizinguseofproductionfacilities.LEARNINGOBJECTIVE4ListthefivecomponentsBasicComponentsofcost-volume-profitCVPanalysisconsiderstheinterrelationshipsamongthecomponentsshowninanalysis.Illustration19-10.Rawmaterials,Ut

3、ilities,taxes,$depreciation,Salesvariablelabor,etc.Costetc.$$Cost(perunit)UnitsUnitsVolumeorlevelUnitsellingVariablecostsTotalfixedSalesmixofactivitypricesperunitcostsIllustration19-10ComponentsofCVPanalysisThefollowingassumptionsunderlieeachCVPanalysis.1.Thebehaviorofbothcostsandreve

4、nuesislinearthroughouttherelevantrangeoftheactivityindex.2.Costscanbeclassifiedaccuratelyaseithervariableorfixed.3.Changesinactivityaretheonlyfactorsthataffectcosts.4.Allunitsproducedaresold.5.Whenmorethanonetypeofproductissold,thesalesmixwillremaincon-stant.Thatis,thepercentagethateach

5、productrepresentsoftotalsaleswillstaythesame.SalesmixcomplicatesCVPanalysisbecausedifferentproductswillhavedifferentcostrelationships.Inthischapter,weassumeasingleproduct.(InChapter20,werelaxthisassumption.)Whentheseassumptionsarenotvalid,theCVPanalysismaybeinaccurate.CVPIncomeStateme

6、ntBecauseCVPissoimportantfordecision-making,managementoftenwantsthisLEARNINGOBJECTIVE5informationreportedinacost-volume-profit(CVP)incomestatementformatIndicatewhatcontributionforinternaluse.TheCVPincomestatementclassifiescostsasvariableorfixedmarginisandhowitcanandcomputesacontributionm

7、argin.Contributionmargin(CM)istheamountbeexpressed.ofrevenueremainingafterdeductingvariablecosts.Itisoftenstatedbothasatotalamountandonaperunitbasis.WewilluseVargoVideoCompanytoillustrateaCVPincomestatement.VargoVideoproducesahigh-definitiondigitalcamcorderwith153opticalzoomandawide-sc

8、reen,