Here is the synopsis of our sample research paper on The Relevance Value-based Costing and Cost Volume Profit Analysis in the 21st Century. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper is written in 3 parts. The first part assesses the relevant of value based costing in the 21st century, and where it may be best utilized. The second part of the paper considers the tired and test approaches to costing and assesses the use of the traditional approach such as break even analysis. The last part of the paper considers the circumstances under which cost volume profit (CVP) will be the most effective approach to costing. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEvaluecost.rtf
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Unformatted sample text from the term paper:
way that will enable profits to be made. In order to realize a profit it is necessary for a firm to understand the way in which costs of providing the
good or service are incurred, so that the pricing will provide for a surplus over the costs incurred. One approach that can add greatly to pricing strategies is use of
value-based costing. An approach that is often seen in the commercial environment is that of revenue maximization. This may be aligned the strategies to increase the level of market share,
accompanied by an underlying assumption that the greater level of revenue the greater the potential level of profit, if not in terms of profit margin percentage, but in numerical value,
especially where increased revenues equate to increased unit sales where there are potential economies in terms of scope and scale (Nellis and Parker, 2006). This is approach which may also
support use of marginal costing, were not all costs are allocated, and only marginal cost are considered in terms of the value that the revenue will produce. Although there are
some instances where this may be beneficial, especially in terms of, complementary sales, revenue maximization is not going to optimize the profits that may be created. The utilization of value
costing has the potential to create value added facilitates effective pricing decisions, and may also support suitable price perceptions on the part of the consumer, where a particular product or
service has the potential to be under priced, for example as seen in the use of dynamic pricing on airline seats, where marginal costing approaches may justify the sale of
seats where there is only a minimal profit margin, as a minimal profit will still help to cover the overheads. However, this is a strategy which is ignoring a potential
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