[rubenokoenique]

Dear all, I am struggeling to find a good answer to the following question, I hope you can help me to give a sufficient answer, as it might come up in the exam this Friday:

Q1

a) Explain the fundamentals of cost volume profit analysis focusing
especially on the validity of the assumptions on which this tool is
based.

b) Discuss in detail the advantages and disadvantages of the traditional
absorption costing method.

thank you in advance!

[A.A.T.]

A little light reading for part a) http://highered.mcgraw-hill.com/site.../chapter_3.pdf