193639 CVP Analysis for a nonprofit, Mount Company, and Blank Co CVP Analysis for a nonprofit, Mount Company, and Blank Co 1.
135175 Does your organization use CVP analysis? Does your organization use CVP analysis? Yes we use CVP for decision making. CVP is a management accounting tool that express relationship between sales volume, cost and profit.
You may view attachment for the remaining response. Thanks for using Brainmass.com. This solution gives a detail account of how Cost Volume Profit (CVP) Analysis can be helpful in organizational development.
Please see the attached files for a more effectively formatted response, as well as more detailed background information on CVP. INTRODUCTION CVP analysis aids strategic business plan decisions across an organization.
The non profit nature of the company does not make these less important. ? The break even analysis is even more important for a non profit organization. It must remain within the budget that has been set for its operations.
These non-reimbursable are directly allocated to suitable non-reimbursable cost category (Chapter III: EXISTING CVP PLANT-IN-SERVICE COST ALLOCATION, 2001).
CVP analysis gives the following equations: Profit= total revenue-total costs Profit= total revenue-total variable cost-total fixed costs Contribution= total revenue-total variable cost Contribution= total fixed costs+ profit Therefore, CVP analysis
The basic CVP equation: Sales-variable cost= contribution margin Contribution margin-fixed costs=net profit/loss The amount of contribution margin is the amount available for absorbing the overhead.
Contribution margin is used as the basic building block of Cost, Volume, Profit analysis. This process has its limitations, but offers a powerful snapshot of how best to set production levels with respect to variable costs.
"The mismatch between strategies and tactics... with the overall goals and objectives of the organization trigger most of the non-value adding activities in operations," (Gupta & Gunasekaran, 2005, pg.338).
424178 Decision making criteria, effect of special order, trade in allowance, CVP analysis Decision making criteria, effect of special order, trade in allowance, CVP analysis Which one of the following is non financial information that management might