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The accountants approach to costvolume profit analysis has been criticized in that, among other matters, it does not deal with the following: (a) situations where
The accountants approach to costvolume profit analysis has been criticized in that, among other matters, it does not deal with the following: (a) situations where sales volume differs radically from production volume; (b) situations where the sales revenue and the total cost functions are markedly non-linear; (c) changes in product mix; and (d) risk and uncertainty. Explain these objections to the accountants conventional costvolumeprofit model and suggest how they can be overcome or ameliorated
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