Critically discuss assumptions/limitations of the cost-volume-profit analysis
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Critically discuss assumptions/limitations of the cost-volume-profit analysis

SECTION B

QUESTION FOUR

Critically discuss assumptions/limitations of the cost-volume-profit analysis (breakeven analysis) in making management decisions.

Hint
Accounts & FinanceCost-volume-profit (CVP) analysis is a way to find out how changes in variable and fixed costs affect a firm's profit. Companies can use CVP to see how many units they need to sell to break even (cover all costs) or reach a certain minimum profit margin....

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