ACC501 case 2



ACC501CS2 – (3-5 pages typed and double-spaced courier new 12 font)

Case assignment expectations:

Cost Volume Profit Analysis and Costing for the 21st Century

Read all the required readings in the background materials about Cost Volume Profit Analysis. Make sure you understand this method and the breakeven analysis which goes with these concepts.

(n.a.) Calculating the Break-Even Point and the Contribution Margin, Retrieved”>

These site have detailed slide presentations of cost-volume-profit analysis.

Cost-Volume-Profit-Analysis, Retrieved from:”>”>

Review this site for a discussion on the preparation of a contribution form of income statement.

(n.a.) (2011)Contribution Margins, Small Business Owners Toolkit. Retrieved from:”>

Here is an excellent resource on CVP. Be sure to study all the links and samples.

(n.a.) (2011) Cost Volume Profit Relationship, Accounting for Management Retrieved from:”>

Now carefully read the following article:

Costing in new enterprise environment: A challenge for managerial accounting researchers and practitioners″>Krishan M Gupta,″>A Gunasekaran.”>Managerial Auditing Journal. Bradford:″>2005. Vol. 20, Iss. 4; pg. 337, 17 pgs

LENGTH: 3-5 pages typed and double-spaced

The following items will be assessed in particular:

  1. Based on the above article and your prior readings, do you agree with the notion of value costing for the 21st Century organizations. Why or Why Not?
  2. Also based on the above article and other readings, why types of situations may be more appropriate for application of the some of the “tried and true” costing methods of the 20th Century? Are these industry or firm specific?
  3. Is Cost-Volume-Profit Analysis still relevant in the 21st Century business organization? Support your answer with reasoned arguments and references as appropriate.


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