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Sir In Sequence profit volume chart why we calculate Cumculative Revene and Cumulative Cost to plot on the graph.As I think we need to plot first that is most profitable but why there is a need of Cumculative.Please tell the reason
You refer to a question called Sequence.
Please tell me which exam it was in – I can’t remember the name of every question in every exam 🙂
Sir I am not asking for a specific CVP exam question.I asked generally that why We calculate cumculative revenue and cumculative cost which is required only in Sequence Profit Volume chart(PV)
Sir Sequence is not a question.Profit Volume Chart consist of further two types one is Multi Product Profit Volume Chart and second is Sequence Profit Volume Chart.I have a problem in the Second chart as the one i mentioned above.
Hope you understand my question
“sequence profit volume chart’ is not a standard term and is not a term that will be used in the exam!
Cumulative revenues and cumulative costs are relevant when drawing a multi-product PV chart. I explain the reasons in my free lectures, and you cannot expect me to type out all my lectures here 🙂
The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well 🙂
Sir please tell the reason here otherwise i would require to review the complete lecture again i am not asking to repeat the complete cvp analysis here.
I only asked that why we need to take cumulative revenue and cumulative cost rather than revenue and cost of each product separately?I am little bit confused.
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