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What is meant by the Cut-Off point in Cost-Volume-Profit Analysis (CVP)/Make-or-buy Decision Making, and how is it calculated? Please note this question has nothing to do with cut-offs in stock-taking, or closing off accounts at month-end, etc., and also nothing to do with Break-Even Points in CVP. Thanks
These two topics are not examinable in Paper MA (not until Paper PM).
However in Paper PM, ‘cut-off point’ is not a standard term and its meaning depends on the rest of the wording of the question.
If you are studying for Paper PM then do watch our free Paper PM lectures. They are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
Thanks for your reply.
This specific question has come up in two separate past exam papers – until now it has proven difficult for me to find any accounting article on the web that might help.
I am new to this forum – is there a link that can be shared here to the free Paper PM Lectures referred to above so I can study and understand better this subject area?
Many Thanks
Declan
If you go to the following page you will find links to all of our free resources for Paper PM (including our lectures and the lectures notes that go with the lectures):
https://opentuition.com/acca/pm/As I wrote in my previous reply our lectures are a complete free course and cover everything needed to be able to pass the exam well. If after watching the lectures you have any problems with past questions or anything then ask in the Paper PM Ask the Tutor Forum and our tutor will help you 🙂
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