1.

(a) CVP analysis is both simple and simplistic. If you want realistic analysis to underpin your decisions, look beyond CVP analysis. Discuss whether you agree to this statement.

(b) Can CVP analysis be applied to a company producing multiple products? Explain.

(c) Provide TWO examples of how a manager can decrease variable costs while increasing fixed costs

(d) Provide TWO examples of how a manager can increase variable costs while decreasing fixed costs.