When the question is asking for breakeven units, is it always necessary for the units to round up. Like if the answer is 15.2 units then the final answer will be 15 or 16 for CVP. In normal case the answer will be 15 but as for CVP , 15 units will not be enough to cover the fixed cost as there is more 0.2 unit so practically we need 16 units to be breakeven..for exam purpose what should be our answer? 15 or 16?
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CVP Analysis - Rounding
2y ago#1It will say rounded if it requires rounding in the question, otherwise, write what figure you have calculated in full.
If it was 15.2 you would get the marks for 15 or 16 in your example.
You only have to worry when it's an OT then you have to be correct
For example
What is the margin of safety (in units)?
A. 15,000
B. 16,250
C. 30,000
D. 31,250
I am talking about MCQ that too with the fill in the blanks option. So at that time what would be the answer 15 or 16 ?
2y ago#3As I have already said
It will say rounded if it requires rounding in the question
Round your answer to the nearest whole number so it would be 15
Otherwise, write what figure you have calculated in full.
A fill in the blank
Would be written to accept 15-16 for electronic marking
It will be clear
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