At the beginning of the year Management asked you to prepare a CVP graph across a range
of production possibilities for the company’s single product. During the period the company
manufactured 8,000 units which is one of the production possibilities covered by your CVP
graph. After the financial statements for the period were prepared, the profit calculated under
the absorption costing method is significantly higher than that predicted by the CVP graph.
REQUIRED:
I. Assuming that the company’s sales were not equal to production, explain in detail
the likely reason for this discrepancy.
II. Name and describe three (3) assumptions of CVP Analysis
欢迎光临 新西兰天维网社区 (http://bbs.skykiwi.com/) | Powered by Discuz! X2 |