ACCT 2101 Chapter : ACCT Chapter 5 Notes
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Cost volume profit: cost behavior how a specific cost responds to changes in activity levels, activity index the amount of the item selected also known as volume. Total cost = variable cost + fixed cost. As volume increases, unit cost declines and vice versa. They should also not be construed as encompassing the complete body of knowledge required for successful completion of this course: relevant range the range over which a company expects to operate during a year. Linear assumptions in this area produce useful data for cvp analysis as long as the level of activity remains within the range. They should also not be construed as encompassing the complete body of knowledge required for successful completion of this course. Fixed overhead ( multiply each of these x unit. Revenues ( unit sales x selling price) (-) variable costs = Variable selling/admin ( multiply each of these x unit sales)
