Exam 2 Flashcards by Nathan Fontan

Q

Assumptions of CVP analysis

A

Relevant Range (prices and costs act normally)
Linear (cost and revenue)
Know Price and Cost
Know # of units sold
Know Sales Mix

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Q

NonValue Added Cost

A

NonValue Added Cost = Actual Cost - Efficient Cost

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Q

three things to be a nonvalue added costs

A

change the product
that change couldnt have been done earlier
it allows for a new step to occur

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Q

A

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