Page 104 - MAC4861_2 Costing Class Slides Part 1

TEST 3 - COSTING

Objectives

• Calculate a break-even point and margin of safety.

• Apply CVP analysis in a multi-product setting.

• Identify and explain the assumptions on which CVP analysis

is based.

• Calculate sensitivities for changes in any variables in the

CVP model.

• Use CVP analysis to determine the expected effect of

decisions and events on profit or the variables that

influence profitability.

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