ACC 206 Week 4 Discussion 2 | Assignment Help | Ashford University

ACC 206 Week 4 Discussion 2 | Assignment Help | Ashford University 



Direct Write-off Method and Allowance Method

 

Prior to beginning work on this discussion, read Chapter 21 in the textbook. In addition, the MyLab materials listed in the Recommended Resources section this week may provide more in-depth information for this discussion (optional).

Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.

Cost-volume-profit (CVP) can be used to calculate the break-even point. The break-even point is the sales level at which the company does not earn a profit or loss. CVP can also be used to add in an amount of profit (target profit) in the calculation. Costs can either be fixed, variable, or mixed.

Include the following in your post:

           Explain variable costs, fixed costs, and mixed costs.

           What is meant by the term relevant range?

           What is contribution margin and how is it calculated?

           Explain the three methods: the equation approach, the contribution approach, and the contribution margin approach to calculate the break-even point.

           Present a chart that depicts the four steps that are necessary to develop the CVP chart.

           What is margin of safety and operating leverage?

Guided Response: Respond to at least two of your classmates by commenting on their posts. Though two replies are the basic expectation for class discussions, for deeper engagement and learning you are encouraged to provide responses to any comments or questions others have given to you. Continuing to engage with peers and the instructor will further the conversation and provide you with opportunities to demonstrate your content expertise, critical thinking, and real-world experiences with the discussion topics.

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