Question
CVP is both simple and simplistic. If you want realistic analysis to underpin your decisions, look beyond CVP. Do you agree? Explain. CVP certainly is
"CVP is both simple and simplistic. If you want realistic analysis to underpin your decisions, look beyond CVP." Do you agree? Explain.
CVP certainly is(complicated/simple), with its assumption ofa (single/numerous) revenue driver(s), a (single/numerous) cost driver(s), and linear revenue and cost relationships. Whether these assumptions make it simplistic (depends/does not depend) on the decision context. In some cases, these assumptions may be (too inaccurate/sufficiently accurate) for CVP to provide useful insights. Which of the following in brackets is the answer?
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