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What is the cost volume profit analysis?
cvp is the analysis that deals with how profits and cost change with a change in volume
What is the purpose of Cost volume profit analysis?
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What is another name for break-even analysis?
Cost-volume-profit analysis (CVP), or break-even analysis,
What are the advantages of cost volume profit analysis?
One advantage of cost volume profit analysis is so that businesses can plan for the future. A business might be wanting to expand, but if the profit margin is too low, they may have to wait to expand.
Advantages and disadvantages of cost-volume-profit analysis?
A key advantage to cost-volume-profit analysis is the fact that it allows managers to more easily answer questions and provides details of company activity. A large drawback is the fact that CVP is limited to its amount of information it can provide.
What is break even analysis and how does it work with cost volume profit analysis?
cost volume profit is use anlyse how cost and profit change with change in volume of activity
How would you define cost-volume-profit analysis?
Cost-volume-profit analysis (CVP), or break-even analysis, is used to compute the volume level at which total revenues are equal to total costs.
What is the cost volume profit analysis?
cvp is the analysis that deals with how profits and cost change with a change in volume
What is the purpose of Cost volume profit analysis?
b
What is another name for break-even analysis?
Cost-volume-profit analysis (CVP), or break-even analysis,
What are the advantages of cost volume profit analysis?
One advantage of cost volume profit analysis is so that businesses can plan for the future. A business might be wanting to expand, but if the profit margin is too low, they may have to wait to expand.
Compare marginal costing versus cvp analysis?
CVP stands for Cost-Volume-Profit.
What is cost-volume-profit analysis based on?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
How Cost Volume Profit cost-volume-profit analysis would help managers in their decision making?
Cost volume profit analysis is a basic financial analysis tools to determine the underlying profitability of a company. Its components include activity level, price per unit, variable cost per unit and total fixed cost.
Advantages and disadvantages of cost-volume-profit analysis?
A key advantage to cost-volume-profit analysis is the fact that it allows managers to more easily answer questions and provides details of company activity. A large drawback is the fact that CVP is limited to its amount of information it can provide.
What are the difficulties that a company could experience in the calculation of Cost Volume Profit analysis?
Due to several factors
Why is it more accurate to describe the subject matter as cvp analysis rather than as breakeven analysis?
CVP analysis, or cost-volume-profit analysis, provides a broader framework than breakeven analysis by examining the relationships between costs, sales volume, and profit across various levels of activity. While breakeven analysis focuses specifically on the point where total revenues equal total costs, CVP analysis also considers how changes in costs, prices, and volume affect overall profitability. This comprehensive approach helps businesses make informed decisions about pricing, product mix, and cost control, making CVP analysis a more accurate and versatile tool for financial planning and analysis.
