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    Cost-Volume-Profit Analysis and Costing Methods

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    1. How can you use cost-volume-profit analysis to make informed business decisions?

    2. How do you use variable and absorption costing methods to make informed business decisions?

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    https://brainmass.com/business/cost-volume-profit-analysis/cost-volume-profit-analysis-costing-methods-593387

    Solution Preview

    1. Cost volume profit analysis can be used to make informed business decisions in several ways. It can be used to find the breakeven output. The business knows how much it must produce to break even. Also, the business comes to know the price at which per unit total costs equal price. Further, It lets the business know how much per unit sale is contributing to the fixed costs of the business. It also lets the business know the price up to ...

    Solution Summary

    The answer to this problem explains cost volume profit analysis. The references related to the answer are also included.

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