Section outline
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Cost ,volume profit relationship
Objective of the topic will be to learn:
1.Uses of Cost-Volume-Profit (CVP)Analysis;
2.Break-even Analysis- Equation approach and contribution approach. Break-even Point and Shutdown Point;
3.Graphical Approach of CVP Analysis;
4.Margin of Safety, Degree of Operating Leverage(DOL); Assumptions and Limitations of CVP Analysis; Accounting View vs. Economics View of Break-even Point.
Outcome of the topic:
1.Uses of Cost-Volume-Profit (CVP)Analysis;
2.Break-even Analysis- Equation approach and contribution approach. Break-even Point and Shutdown Point;
3.Graphical Approach of CVP Analysis;
4.Margin of Safety, Degree of Operating Leverage(DOL); Assumptions and Limitations of CVP Analysis; Accounting View vs. Economics View of Break-even Point.
Teaching resources:
(1) Text Book and PowerPoint
(2) Video recording
(3) Live class and discussion
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