PPT-Cost-Volume-Profit Relationships

Learning Objectives Explain the purpose of costvolumeprofit CVP analysis Explain the contribution margin CM concept Compute the breakeven BE point by using graph equation and contribution margin methods. AAE 320. Paul D. Mitchell. Goal of Section. Overview what economists mean by Cost. (Economic) Cost Functions. Derivation of Cost Functions. Concept of Duality. What it all means. Economic Cost. Economic Cost: Value of what is given up whenever an exchange or transformation of resources takes place. This module reviews breakeven and covers the concepts of target profit and volume and price-volume interaction.. Author: Paul Farris. Marketing Metrics Reference: Chapter 3. © 2011 Paul Farris and Management by the Numbers, Inc.. Chapter 5. Learning Objectives. Name the three key questions in capacity planning. Explain the importance of capacity planning. Describe ways of defining and measuring capacity. Name several determinants of effective capacity. Chapter 18. PowerPoint Editor:. Beth Kane, MBA, CPA. Copyright © 2016 McGraw-Hill Education.  All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Dawn Mueller. Information. Selectivity. People don’t seem to mate randomly.. Women are more selective than men. . Attraction. Situational factors. We select from a pool of people whom we have met. . Margin is the amount of gross profit, net profit, or overhead, compared to volume of work. (Expressed as a percentages). Markup is the amount you need to increase your price, or work estimates, to pay for the COGS, Over-head expenses, and receive a desired Net Profit. AP Economics. Mr. Bordelon. Profit. Profit.. . . T. otal revenue minus total cost. π means “profit.”. π = TR – TC. Total revenue.. Price of output times the quantity sold.. TR = PQ. Total cost.. Chapter 5. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Instructor Slides. Capacity. The upper limit or ceiling on the load that an operating unit can handle. Mr. Henry. AP Economics. AP Review . Questions from Yesterday. A requirement of perfect competition is that. Many firms sell an identical product to many buyers. There are no restrictions on entry into (or exit from) the market, and established firms have no advantage over new firms. CHAPTER OBJECTIVES. Meaning of Cost-volume-profit analysis. . Objectives . of Cost-volume-profit . analysis. Assumptions of Cost-volume-profit analysis . T. echniques . or elements of Cost-volume-profit analysis.. International Management Accounting. Prof. Dr. Marc Beutner. TH Köln. 1st . Lecture. Part 2. BA International Business. SoSe. 2024 . Bohill. Chapter 1. What. . are. . we. . going. to do?. Accounting costs. International Management Accounting. Prof. Dr. Marc Beutner. TH Köln. 2. nd . Lecture. SoSe. 2024. Prof. Dr. Marc Beutner. Lehrstuhl Wirtschaftspädagogik II. Prof. Dr. Marc Beutner. Lehrstuhl. Wirtschaftspädagogik II -. STATEMENT OF COST. . For The Year Ending…….. Particulars. Total Cost. Per Unit. Add: Opening Stock of Materials XXX. Materials Purchased XXX. Higher volume causes higher costs.. However, percentage increase in costs is usually less than increase in volume.. Depends on behavior of costs.. Variable costs.. Fixed costs.. Semivariable costs.. Part variable, part fixed..