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Cost Volume Profit Analysis Cases

Cost Volume Profit Analysis Cases

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Published by Navita Mapari

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Published by: Navita Mapari on Jul 05, 2012
Copyright:Attribution Non-commercial

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05/13/2014

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Click to edit Master subtitle style7/5/12
 
COST VOLUME PROFITANALYSIS CASES
 
7/5/12
 
CASE 4-1, WENDELL ROBERTSCONSULTING
a.
Explain why William’s assumption leads to ahigher claim. Is this behavior ethical?
•.
Assumption: More costs you assume are fixedthe higher claim.
•.
Company can claim higher when thedifference between projected and actualincome is vast.
 
7/5/12
 
a. Is this behavior ethical?
 No, because it can have a bad impact on thecompany’s image if the secret is revealed.
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