Read all the required readings in the background materials about Cost Volume Profit Analysis. Make sure you understand this method and the breakeven analysis which goes with these concepts. Now carefully read the following article: Costing in new enterprise environment: A challenge for managerial accounting researchers and practitionersKrishan M Gupta, A Gunasekaran. Managerial Auditing Journal. Bradford: 2005. Vol. 20, Iss. 4; p. 337 (17 pages). Based on the above article and your prior readings, do you agree with the notion of value costing for the 21st Century organizations. Why or Why Not? Also based on the above article and other readings, why types of situations may be more appropriate for application of the some of the “tried and true” costing methods of the 20th Century? Are these industry or firm specific? Is Cost-Volume-Profit Analysis still relevant in the 21st Century business organization? Support your answer with reasoned arguments and references as appropriate.
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