A Formula for the Units to Satisfy an Operation's Desired Rate of Return in CVP Analysis--A Conceptual Approach

Autor/inn/en	Anderson, Johann A.; Leese, Wallace R.
Titel	A Formula for the Units to Satisfy an Operation's Desired Rate of Return in CVP Analysis--A Conceptual Approach
Quelle	In: American Journal of Business Education, 9 (2016) 2, S.87-100 (14 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	1942-2504
Schlagwörter	Accounting; Mathematical Formulas; Costs; Income; Algebra; Equations (Mathematics); Productivity + Suchen Sie Ihr Suchwort? Abrechnung; Buchführung; Buchhaltung; Mathematische Formel; Cost; Kosten; Einkommen; Equations; Mathematics; Gleichungslehre; Produktivität
Abstract	A common formula presented in many managerial- and cost-accounting textbooks makes possible the determination of the quantity of units which must be produced and sold to generate a desired dollar-amount of operating income. This article addresses the question "What formula can be used to determine the quantity of units needed to yield a desired operating-income level expressed as a rate of return on total operations-costs?" Algebraic and conceptual issues regarding the derivation of such a formula are identified. The desired formula is initially derived via a conceptual approach, which is verified with algebraic solutions afterward. An example problem is given, followed by concluding remarks. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01