Reflective Journal of Management Accounting

Running Head: ACCOUNTING
0
Management Accounting
Reflective Journal
(Student Details: )
2/1/2020

ACCOUNTING
1
Contents
Reflection: Cost Volume Profit (CVP) Analysis........................................................................2
Introduction................................................................................................................................2
Reflection...................................................................................................................................2
Conclusion..................................................................................................................................4
References..................................................................................................................................5

ACCOUNTING
2
Reflection: Cost Volume Profit (CVP) Analysis
Introduction
This reflective journal is based on learning acquired from the unit HA2011 Management
Accounting (MA). The key purpose of the discussion is to demonstrate a critical reflection of
my personal learning process, experienced during the MA unit. With the help of this
individual reflection, I will talk about Cost Volume Profit (CVP) Analysis as this topic
interested me the most from this management accounting unit. While providing the reasons
behind the above, I will also narrate my group experiences along with the learning through
them.
Reflection
During this unit, I have learned about so many accounting related topics, out of which CVP
analysis was one of the interesting topics for future academic development. To me, CVP
analysis refers to a decision tool that is typically used to define how variations in the volume,
as well as cost, affect an organization’s net income and operating income. While performing
the CVP analysis, I noticed that there were so many assumptions made. An example of such
an assumption was included variable costs per unit and the sales price per unit is constant. To
conduct the CVP analysis, the total fixed costs are divided by the contribution margin ratio.
In this way, based on (Bumann et al., 2012), I learned to calculate the break-even point of
sales in the form of total break-even dollars. I observed that in CVP analysis all the units
generated are assumed to be sold, as well as fixed costs should always be stable. My learning
related to CVP analysis suggest that CVP needs that all types of costs in a company are
identified either as fixed or variable. These costs may include selling, administrative and
manufacturing costs. I would like to mention that key calculative factors in the CVP analysis
include contribution margin ratio and contribution margin. One important fact about CVP
analysis is that it is used whenever an organization is attempting to define what level of sales
is essential for reaching a particular level of income, which is known as targeted income. The
key topics which were taught in this topic include graphing CVP relations, CVP for