• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountant's have a CVP model that is appropriate for assisting management with decision making

Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  • Essay length: 1867 words
  • Submitted: 09/02/2009
Share this essay:

Do not show me this again

Are you in the right place?

Jump to Accounting and Finance and see how teachers think you should prepare in:

University Degree Accounting

The first 200 words of this essay...

[TYPE THE COMPANY NAME]

BEA2003- Management Accounting

Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountant's have a CVP model that is appropriate for assisting management with decision making

Ryan Bebbington

Word Count 1796

Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountant's have a CVP model that is appropriate for assisting management with decision making

Cost volume profit analysis looks into the relationship between a firms fixed and variable costs and total revenues across a varying level of production. The model will give a predicted level of profit at a given level of production. There are many ways that CVP analysis can be useful for decision making, it is important to distinguish between the different applications of the Economists and Accountants interpretations, as well as other factors involved in decision making.

CVP analysis is used in management decisions when forecasting production levels. To use this model effectively, Management will look at different scenarios of output, prices and costs, and see where the model predicts the firm's revenues will cover its total costs. This point is known as the breakeven

Read more
The above preview is unformatted text

Found what you're looking for?

  • Start learning 29% faster today
  • Over 150,000 essays available
  • Just £6.99 a month

  • "
    A very useful service as it can help to give you ideas and get you started on your own essays/coursework.
    "
    M Singh. English. A Level Student.
  • "
    I have used the site to find relevant essay questions for my senior students in Modern History to complete. As well as provided some essay samples to demonstrate the stucture of an historical essay.
    "
    Yvette Agars. Senior History Teacher. Saint John's College. Whyalla S.A.

Marked by a teacher

This essay has been marked by one of our great teachers. You can read the full teachers notes when you download the essay.

Peer reviewed

This essay has been reviewed by one of our specialist student essay reviewing squad. Read the full review on the essay page.

Peer reviewed

This essay has been reviewed by one of our specialist student essay reviewing squad. Read the full review under the essay preview on this page.

Do not show me this again

Are you in the right place?

Jump to Accounting and Finance and see how teachers think you should prepare in: