COST–VOLUME–PROFIT ANALYSIS Assignments | Custom Essay Help

Module 2 Case
Elizabeth Harris
ACC501

Memo
To: owner of the dance center
From: Ms. Smith
CC:
Date: month/day/year
Re: Finance Application Assignment
______________________________________________________________________________
1. Introduction
I am writing this memo to help you understand the financial analysis.
Understanding the financial analysis in the pictures shown below concerning Hip-hop concert, Jazz and Tap dance, and Christmas spectacular, company business description and comparative financial analysis.
Review of the Christmas spectacular event.
Limitation of multi product even analysis
• In multi-product even analysis making unrealistic assumptions is one of the limitations for example prices are not sold at the same prices at varying levels of output and fixed costs change when the output changes
• Their might be build up or wasted stock since sales are not equal to stocks
• Variable costs are constantly changing.
• It is harder to calculate break even for businesses which sell more than one product. (“Cost-volume profit: Definition and limitations,” 2015)
• Break even analysis is a more of a planning aid than a decision making tool.
Resources constraints affect multi product analysis if the limited resource is not a core business activity, it may be appropriate to outsource additional units of the limited resource externally. For example: many organizations have a small legal staff to handle routine activities; if the internal staff becomes fully committed, the organization seeks outside legal counsel.

Reference
|The Exam Performance Specialists. https://www.tutor2u.net/business/reference/breakeven-analy…gths-and-limitations
Cost-volume profit (CVP): Definition and limitations. (2015, May 13). Your Article Library. https://www.yourarticlelibrary.com/accounting/costing/cost-volume-profit-cvp-definition-and-limitations/52670