LEARNING OBJECTIVESAfter studying this chapter, you should be able to:
10.1 define fixed, variable and mixed costs
10.2 prepare a break-even analysis for single-product and multi-product entities
10.3 apply the contribution margin ratio to CVP calculations
10.4 explain the key assumptions underlying CVP analysis
10.5 discuss the uses of break-even data
10.6 outline the concept of operating leverage
10.7 assess the profitability of output when there are resource limitationsmaking 10.8 Relevant information for decision
10.9 analyse an outsourcing decision
10.10 analyse a special order decision.CHAPTER 10
Cost–volume–
profit analysis
Contents
Chapter 10 preview
10.1 Cost behaviour
10.2 Break-even analysis
10.3 Contribution margin ratio
10.4 CVP assumptions
10.5 Using break-even data
10.6 Operating leverage
factor 10.7 Contribution margin per limiting
10.8 Relevant information for decision making
10.9 Outsourcing decisions
10.10 Special order decisions