After studying this Chapter 20 Cost Volume Profit Analysis, you should be able :
- Determine the number of units that must be sold to break even or to earn a targeted profit.
- Calculate the amount of revenue required to break even or to earn a targeted profit.
- Apply cost-volume-profit analysis in a multiple-product setting.
- Prepare a profit-volume graph and a cost-volume-profit graph, and explain the meaning of each.
- Explain the impact of the risk, uncertainty, and changing variables on cost-volume-profit analysis.
- Discuss the impact of activity-based costing on cost-volume-profit analysis.
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