Acc/561 W 4 Assignment

CVP Discussion brain ACC/561 August 26, 2012 William Montgomery CVP Discussion Question What are the strengths and weaknesses of the CVP model? The CVP abstract is based on statistical models; it volition help companies to trip up if they will dislocation even and project how much expending inside output will take place. When commission understands the spending in acrimony of appearance the company, they bottom tweak the pending method in spite of appearance the company to maximize their profit margin. These methods help the compendium and pay heed between a profit margin or a nonprofit margin. CVP analysis allows worry to use variable scathe to identify future performances in spite of appearance the company. This can also divide out disadvantages of managers not looking thoroughly through the companies performances. These managers pitch to be ones who do not record their records thoroughly. CVP analysis tends to be a beneficial tool to manageme nt, but it is limited in the amount of money of information that can be cand for reapingion operations. This analysis take holds a hypothesis of what the question is make of, to give an advantage to management but continues to not be an exact purpose for management. The procedure simply gives product management a guideline to go by.

While it does not provide an answer to problems that occur, it does tend to give more questions than answer. Management must exercise caution in using this system, when making end about how to operate or run all(prenominal) operation indoors the company. How would you use CVP analysis to determine the product mix withi! n a retail outlet? In the retail range the CVP analysis can be utilized to determine the product mix within a retail outlet, this can be done by first analyzing the volume of level of natural action within the retail store. The CVP analysis will be reasonable in a retail setting only if the arrogance is made that the percentages of each product sold will inescapably stay the same. Since changes of these percentages will corrupt...If you want to get a full(a) essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay