Question 1:
What are some examples of how alternative income statements are used in decision making? What are the two types of approaches in using alternative income statements? What is cost behavior and how does it impact a financial analysis? What processes does your company or a previous employer use to analyze cost behavior?
Question 2:
The cost structure of an organization is its mix of fixed and variable costs. How can CVP analysis be used to evaluate decisions that affect the cost structure of an organization? In your organization, does management lean toward choosing fixed or variable costs when considering change? Why?