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The cost-volume-profit analysis (CVP) is based on the assumption that there are linear relationships among all cost and revenue variables. This linearity suggests practical and

The cost-volume-profit analysis (CVP) is based on the assumption that there are linear relationships among all cost and revenue variables. This linearity suggests practical and conceptual limitations on the usefulness of the CVP analysis. Alternatively, managerial accountants, in some companies, use the nonlinear CVP analysis that includes techniques to estimate the nonlinear revenue and costs curves. Write a paper to compare the linear and nonlinear CVP analysis and provide your opinion and conclusion about the effectiveness of both analyses. Your paper should include the following:

1. Discussion on the benefits of using the CVP in decision making

2.Explanation of the linear CVP analysis and its assumptions.

3. Discussion of conceptual and practical limitations of the linear CVP analysis.

4. Discussion of the nonlinear CVP analysis and techniques used to estimate the revenues and costs functions/curves.

5. An example of a nonlinear break-even point.

6. Your clear opinion on the validity and effectiveness of the nonlinear CVP analysis.

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