50.1K

Verified Solution

Question

Accounting

DOES CVP ANALYSIS APPLY TO SERVICE INDUSTRIES?

Answer & Explanation Solved by verified expert
3.8 Ratings (640 Votes)
YES CVP ANALYSIS APPLY TO SERVICES INDUSTRIES AS CVP ANALYSIS IS ANALYSIS OF RELATIONSHIP AMONG COST INCURRED PROFIT EARNEDLOSS SUFFERED AT DIFFERENT LEVEL OF VOLUME OF SALE IT APPLIES TO PRODUCTION SECTOR AND SERVICE INDUSTRIES BECAUSE IN ANALYZING CVP WE NEED ONLY TO DISTINGUISH TOTAL COST INCURRED INTO TWO CATEGORIES THAT IS VARIABLE COST AND FIXED COST AT DIFFERENT LEVEL OF SALES VOLUME SO IT IS SERVICE INDUSTRY OR PRODUCTION INDUSTRY WE ONLY WANT SELLING PRICE VARIABLE COST AND FIXED COST THERE MAY DIFFERENCE OF TYPES OF    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students