Financial Analysis for Managers I Coursework Example | Topics and Well Written Essays - 750 words

fiscal Analysis for Managers I - Coursework ExampleThe rent of a wareho theatrical role where these pencils are stored is $100 hence it is a rigid cost. $100 would still need to be give whether 10 pencils are stored there or 1000 pencils. Thus with a change in growthion, the fixed be remain unmoved.Cost-Volume-Profit (CVP) analysis is a managerial accounting tool that helps to identify a relationship between the cost, profit and sales volume. It is utilize to 1) determine the level of output required to achieve any target profit level or 2) to find the impact changes in costs to the profitability. (Mowen & Hansen, 2005)In CVP analysis, break eventide means to produce goods at such a quantity where there is no-profit and no-loss. It is a position where the company incurs exactly the same amount that it generates from the sales. (Mowen & Hansen, 2005)A estimate cost is that cost that can be directly attributable to a specific unit of product or with a specific operation relating to production. On the other hand, an indirect cost is a fixed or overhead cost that does non adjoin to the production of a particular item and is incurred even when there is no output. (PHB, 2005)The core activity of an accounting teaching class is to educate the students. Therefore either those items that directly relate to the educational process of accounting would be direct costs and those that do not relate to the educational process of accounting would be treated as indirect costs. The salary paid to the accounting teacher and the costs of accounting books will be direct costs since they directly relate to the teaching of the accounting course. The costs of lighting, electricity, janitorial services, etc. would be indirect costs since they just aid in the teaching process but are not directly related to teaching the course. 5. How can due costs and opportunity costs be applied to your personal financial decisions Out of pocket costs and opportunity costs can be applied to an individuals personal financial decisions by comparing both of these costs. If the benefit of playing an hour of football is more that the benefit of studying for an hour, then the individual should use that hour to play football. If one hour is being spent each day at a tuition center which costs $50/hour for a 4 day week, it would cost $800 for a month using up 16 hours. If these 16 hours are used for other work akin taking a horse sit lesson which is $400/month, then financially taking horse riding lesso