A key advantage to cost-volume-profit analysis is the fact that it allows managers to more easily answer questions and provides details of company activity. A large drawback is the fact that CVP is limited to its amount of information it can provide.
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advantages and disadvantages of transactional technique
Disadvantages of break even analysis includes: * These are the assumptions mentioned above such as Sales=Stock or Total Revenue and Total Cost functions are linear. * The model is static, it cannot account for changes in environment.
The advantages are that you will be able to get more things for the business. The disadvantages are that they are a lot of costs.
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the disadvantages of cost classification