COST ACCOUNTING

Cost-Volume-Profit Analysis
TOPIC OVERVIEW Cost Accounting Cost-Volume-Profit Analysis 3rd Year 40 minutes

Topic Level Duration

Learning Objectives: 1. 2. 3. 4. To identify variable and fixed costs; To understand the uses and assumptions of Cost-Volume-Profit (CVP) Analysis; To apply the CVP analysis formula; To calculate unit contributions, break-even point, sales volume required to break-even or to earn a target profit, and margin of safety; and 5. To apply the CVP analysis in decision making and estimation under different scenarios.

Prior Knowledge: Students should be familiar with Cost-Volume-Profit Analysis and calculating the Rate of Return Resources: Topic Overview, Teaching Plan and Answers to Case Study PowerPoint Presentation

Suggested Activities: Case Study

Cost-Volume-Profit Analysis Bon Carlo M. Melocoton, CPA

COST ACCOUNTING
Cost-Volume-Profit Analysis
LESSON Cost-Volume-Profit Analysis 40 minutes

Theme Duration

Expected Learning Outcomes: Upon completion of this lesson, students will be able to: 1. Apply the CVP analysis formula to calculate unit contributions, break-even point, sales volume required to break-even to earn a target profit, and margin of safety; and 2. Apply the CVP analysis in decision making and estimation under different scenarios. Teaching Sequence and Time Allocations: Activities Part I. Introduction Teacher begins lesson by illustrating that product profit is affected by cost, selling price and sales volume to bring out the lesson theme Part II. Content Activity 1: Case Study (Part I) o Read the case study and its corresponding problems o Discuss the solutions to the problems o Key points learned for the activity Activity 2: Case Study (Part II) o Teacher reviews the break-even point concept o Continue the case study and its corresponding problems o Discuss the solutions to the problems o Key points learned for the activity Activity 3: Case Study (Part III) o Continue the case study and its corresponding problems o Discuss the solutions to the problems o Key points learned for the activity Reference PPT #1-4 Time Allocation 3 minutes

PPT # 5-13

8 minutes

PPT #14-21

8 minutes

PPT #22-32

8 minutes

Cost-Volume-Profit Analysis Bon Carlo M. Melocoton, CPA

Activities Activity 4: Case Study (Part IV The Proposal) o Continue the case study and its corresponding problems o Discuss the solutions to the problems o Key points learned for the activity Part III. Conclusion Teacher concludes lesson and highlights key point; Teacher asks students if the lesson is clear and if there are questions or topics not clear Preparation for the next lesson:

Reference PPT # 33-39

Time Allocation 8 minutes

PPT #40

5 minutes

Students are asked to study the case study, questions and answers and ask the teacher questions on unclear areas.

Cost-Volume-Profit Analysis Bon Carlo M. Melocoton, CPA