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Author: |
Rob Stephens, Founder of CFO Perspective, Adjunct Instructor Gonzaga University |
Course Length: |
Pages: 20 ||| Word Count: 8191 ||| Review Questions: 6 ||| Final Exam Questions: 8 |
CPE Credits: |
1.5 |
IRS Credits: |
0 |
Price: |
$13.45 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Accounting |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course teaches how to apply marginal profitability analysis, along with cost volume profit and break even analysis, to assess product lines and pricing decisions.
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Frequently Asked Questions: |
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Description: |
Marginal profitability analysis provides relevant decision information for setting prices, product design, and product profitability. Analysis of whether to open or close locations or divisions can also be done with marginal profitability analysis. The course starts by defining marginal costs and marginal profits and then explains how to calculate marginal profitability. You will learn how to create cost-volume-profit (CVP) analyses and breakeven analysis. Marginal profitability is compared to traditional full absorption product costing or activity-based costing to identify the pros and cons of each method and when each is appropriate. The course provides practical examples of making decisions with marginal profitability analysis. Examples include determining optimal production amounts and which products to promote. The final section explains how to calculate the change in profitability from a price increase and a price decrease. A worksheet template is provided for this analysis. |
Usage Rank: |
10000 |
Release: |
2022 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
External: Marginal Profit
Internal: Marginal Profitability Analysis
Internal: Marginal Profit
External: Marginal profit overview and calculations (Corporate Finance Institute)
External: CVP and break-even analysis (Investopedia)
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
25-Oct-2025 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Marginal Profitability Analysis - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives Upon completion of this course, you will be able to:
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Course Contents: |
Chapter 1 - Marginal Profitability Analysis Introduction Welcome to the Course Section 1: Defining Marginal Costs and Profit 1.1 Types of Costs 1.2 Marginal Costs and Profits Section 2. Marginal Profit Calculation 2.1 Marginal Profit Calculation 2.2 Cost-Volume-Profit (CVP) Analysis Review Questions #1 Section 3. Marginal Profit and Activity-Based Costing (ABC) 3.1 Traditional and Activity-Based Costing 3.2 Marginal Costing vs. ABC Section 4. Practical Applications of Marginal Profitability Part I: How Much to Produce? 4.1 How Much To Produce - Cost Curves 4.2 Example Analysis of Which Product To Produce Section 5. Practical Applications of Marginal Profitability Part II: Setting Pricing 5.1 Key Factors of Profitability Section 6. Pricing Analysis 6.1 Pricing Decrease Analysis 6.2 Pricing Increase Analysis Conclusion & Take-aways Review Questions #2 Glossary/Index |
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