Question

Why is cost volume profit relationship important in managerial decision making ?

Answer 1

By breaking down costs into fixed versus variable, CVP analysis gives companies strong insight into the profitability of their products or services. Many companies and accounting professionals use cost-volume-profit analysis to make informed decisions about the products or services they sell.

Application of Cost Volume Profit Relationship in Decision Making. Article shared by : ... Marketing Manager: ... But you have learnt that level of fixed cost is equally important

Answer 2

↪the cost volume profit relationship important in managerial decision making⤵⤵

⭐promotes diversity.

⭐promotes illusiveness.