Wiley CPA excel Exam Review 2014 Study Guide, Business Environment and Concepts

Module 47: Planning, Control, and Analysis

Overview

This module discusses a number of tools used internally for financial planning, control, and analysis. In the area of financial planning, the module focuses on cost-volume-profit analysis. An understanding of the behavior of costs is essential to effective management of an organization. The module also examines the tools managers use to make effective financial decisions, including forecasting, budgeting, and regression analysis.

In the area of control, the module focuses on the establishment of standards and variance analysis. Finally, the module reviews the techniques used to perform specific tasks or make particular types of decisions, including project management, product and service pricing, transfer pricing, and short-term differential cost analysis. Before beginning the reading you should review the key terms at the end of the module.

A. Cost-Volume-Profit (CVP) Analysis

B. Financial Planning

C. Budgeting

D. Forecasting Methods

E. Flexible Budgets

F. Responsibility Accounting

G. Segmented Reporting and Controllability

H. Standards and Variances

I. Product and Service Pricing

J. Transfer Pricing

K. Short-Term Differential Cost Analysis

Key Terms

Multiple-Choice Questions

Multiple-Choice Answers and Explanations

Written Communication Task

Written Communication Task Solution

A. Cost-Volume-Profit (CVP) Analysis

1. Overview

Cost-volume-profit (CVP) analysis provides management with profitability estimates at all levels of ...