PPT-Cost-Volume-Profit Analysis

Chapter 18 PowerPoint Editor Beth Kane MBA CPA Copyright 2016 McGrawHill Education  All rights reserved No reproduction or distribution without the prior written consent of McGrawHill Education. 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. Based on the books: . Building Lean Supply Chains with the Theory . of . Constraints . M. anaging . Business Process Flow . Throughput Profit Multiplier (TPM). A large fraction of the operating costs are fixed . Marginals. for linear functions. Break Even points. Supply and Demand Equilibrium. Applications with Linear Functions. Cost, Revenue, Profit, . Marginals. Cost: C(x) = variable costs + fixed costs. Revenue: R(x) = (price)(# sold). maximization. Economic profit = total revenue - all economic costs. Economic costs include accounting cost. (. explicit. . costs. ). and opportunity costs (implicit. . costs. ).. Profit maximization. for . gmat. cat. arpit. . http://www.freegregmatclass.com/. Manufacturer ( i.e. the producer). Wholesaler (dealer) Retailer (shopkeeper). Customer. Marginals. for linear functions. Break Even points. Supply and Demand Equilibrium. Applications with Linear Functions. Cost, Revenue, Profit, . Marginals. Cost: C(x) = variable costs + fixed costs. Revenue: R(x) = (price)(# sold). Dr. . Ron . Lembke. Break-Even . Profit quantity. How much do sales have to grow to make an investment pay off?. Fixed costs = $10,000. Direct labor = $1.50 / unit. Material = $0.75 / unit. Sales price = $4.00. 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. . The costs that an organization incurs even when there is little or no activity are . fixed costs. , or . overhead. .. Finding Marginal Cost. . Variable costs . are usually associated with labor and raw materials and change with the business’s rate of operation or output.. 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 -. Based on the books: . Building Lean Supply Chains with the Theory . of . Constraints . M. anaging . Business Process Flow . Throughput Profit Multiplier (TPM). A large fraction of the operating costs are fixed . STATEMENT OF COST. . For The Year Ending…….. Particulars. Total Cost. Per Unit. Add: Opening Stock of Materials XXX. Materials Purchased XXX.