Question

Write a brief note on cost-volume profit Analysis.

Answer 1

Cost volume profit analysis -

Cost volume profit ( CVP ) analysis is used to determine how changes in costs and volume affect a company's operating income and net income . In performing this analysis there are several assumptions made, including :

Cost volume profit ( CVP ) analysis is used to determine how changes in costs and volume affect a company's operating income and net income . In performing this analysis there are several assumptions made, including :Sales Price per unit is constant.