Question
Which of the following is not one of the costs analysed in CPA Dividends Order handling Delivering to customers Granting credit
Answer
4.3
(217 Votes)
Vivienne
Professional · Tutor for 6 years
Answer
Dividends.
Explanation
CPA, or Cost Profitability Analysis, involves assessing all costs directly linked to undertaking business activities. These activities include things such as order handling, delivering products to customers, and extending credit to clients, each of they generally relate to revenue-generation activities or core, operational practices/procedures. Entrepreneurs examine these expenses carefully in cost profit analyses because they affect the firm's bottom line and financial health.On the other hand, Dividends are not part of this particular analysis. Dividends, as payments from profits made to company owners or investors, are examined and acted upon after determining an enterprise's profit. After all costs related to production, distribution, financing and operating the businesses have been assessed analyzed and discharged, then the owners or the Board would decide on how much dividends to declare. As such, dividends don't directly link to the operation but to the distribution of accrued gains. Therefore, Dividends is not included while applying CPA.