Words of Wisdom:

"You can't be brave if you've only had wonderful things happen to you." - Ldpende

Act 460 Module 2 Critical Thinking : Cost-Volume-Profit Analysis

  • Date Submitted: 11/14/2015 11:08 PM
  • Flesch-Kincaid Score: 49 
  • Words: 291
  • Essay Grade: no grades
  • Report this Essay
ACT 460 Module 2 Critical Thinking : Cost-Volume-Profit Analysis

https://homeworklance.com/downloads/act-460-module-2-critical-thinking-cost-volume-profit-analysis/
ACT 460 Module 2 Critical Thinking : Cost-Volume-Profit Analysis

Critical Thinking: (90 )
Choose one of the two options below.
Option #1: Cost-Volume-Profit Analysis

Steve Smith has completed a forecast of cost-volume-profit analysis for the Swiss Chocolate Manufacturing Company’s U.S. division manufacturing plant for the coming year. Smith notes the decline in volumes and prepares the breakeven analysis and computes the margin of safety; he notes that the current production volume projections indicate that the margin of safety will be positive for the period. However, the company will not achieve the sales volume required to achieve its desired level of operating and net income. In addition, the degree of operating leverage is high. Rick White has been tasked with suggesting some cost savings by the vice president of operations.

In a well-written paper demonstrating CSU-Global standards, discuss the following.
1. Given the fact pattern above, identify whether White should seek reductions in variable or fixed costs for
the greatest impact on the forecast.
2. What types of costs might White suggest for potential savings based on your answer? Name three costs

that could be addressed, and rationalize your response.
3. What parts of the value chain might be negatively impacted by White’s decision in the current period?
How will this impact the company in the future? Name three ways the company may be impacted by the decision to cut cost.

Your paper should meet the following requirements:


• 3-4 pages in length
• Formatted according to the CSU-Global Guide to Writing and APA Requirements
• Include at least three outside sources

Comments

Express your owns thoughts and ideas on this essay by writing a grade and/or critique.

  1. No comments

  1. Chapter 8 Cost-Volume-Profit Analysis Answers To Review Questions
    the budgeted sales volume. A CVP analysis also shows how profit will change if the sales volume deviates from budgeted sales. Cost-volume-profit analysis can be used...
  2. Cost Volume Profit Analysis And Costing For The 21St Century
    for: cost-volume-profit analysis. (n.d.). Retrieved from http:// www.allbusiness.com/glossaries/cost-volume-profit-cvp-analysis/4950439-1.html Cost analysis...
  3. Cost Volume Profit Analysis: Establishing a Decision Model
    profits and survive. The Cost Volume Profit Analysis is the paramount and most cost efficient way of doing so. By understanding the economic consequences of cost...