Question

to which function of the management of cvp is more applicable

Answer 1

CVP Analysis or Cost-Volume Profit Analysis breaks down how variable costs and price points will produce different results. If a business produces an item and can change their material costs per unit depending on the volume they buy, that gives them different options for what they can charge and recover in operations. So if business x makes widgets and the cost of supplies for 100 is $1,000 while the cost to make 1,000 is $5,000 and they can sell 100 units to meet demand for $75 per unit and 800 units if they charge $50 per unit, the Cost-Volume Profit Analysis shows what sorts of returns can be expected at each decision if certain factors change on a graph.

Answer and Explanation:

The organizational function of management is where CVP analysis is most applicable as this gives managers a sense of what they will need and how much...