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Accounting

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Match the following business scenarios to the most appropriate analytical technique or approach. A company has a new product idea that comes with additional fixed costs. It wants to understand the minimum sales needed to cover the additional costs given the sales and expense estimates for the new product in conjunction with existing product data. A company wants to evaluate a new product idea but is aware that there are competitive limitations around consumer pricing. It also has a minimum goal for its net profit margin. A company is interested in understanding its sales and expense trends in comparison to budgeted amounts. A company is interested in understanding its sales and expense trends in comparison to prior year amounts. A company wants to evaluate its manufacturing capacity to determine if expansion is needed given expectations for sales growth. Choose... Target costing analysis Target profit analysis (single/multiple product) Variance analysis (period-to-period) Break even analysis (multiple product) Variance analysis (actual versus standard) Discounted cash flow analysis Utilization rates Break even analysis (single product) A company is interested in understanding its sales and expense trends in comparison to budgeted amounts. A company is interested in understanding its sales and expense trends in comparison to prior year amounts. A company wants to evaluate its manufacturing capacity to determine if expansion is needed given expectations for sales growth. A company is considering changing its sales prices and want to understand the minimum sales needed to earn a predetermined profit amount at the new price levels. A company has reached its manufacturing capacity limit and is interested in evaluating several options for expansion

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