Cost-volume-profit analysis

Enterprise Architecture.
March 3, 2020
“Mother Tongue” by Amy Tan from Chapter 6 of Language Awareness
March 3, 2020

Cost-volume-profit analysis, or CVP, is something companies use to figure out how changes in costs and volume affect their operating expenses and net income. In other words, CVP is a methodical analysis of the dynamic inter-relationship between selling prices, sales and production volume, cost expenses, and profits.

Respond to the following in a minimum of 175 words:

Explain each of the three elements of CVP analysis.
Discuss how managers use CVP analysis.

Sample Solution

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