To prepare for this Assignment, examine cost concepts as a decision-making tool for managers.
In a 3- to 4-page paper, address the following:
Describe the use of cost-volume-profit analysis in decision making, including how it helps managers cope with uncertainty.
Explain how the contribution margin changes as output levels vary due to moving variable and fixed costs.
Compare and contrast gross margin and contribution margin.
Explain the uses of gross and contribution margins, including why a company would need to account for both.