Running head: DISCUSSION
Using the Internet, review at least three articles on the Profit-Cost-Volume relationship.
Summary (300 words or more) the articles in your own words.
Article by Rosemarie Kellie
Cost volume profit analysis aims at examining the relationship between a change in activity and
a change in the total sales revenue, costs, and profits. It plays a significant role in aiding a
business that is starting its operations or is suffering financially. CVP analysis seeks to find out
the total number of units that are to be sold so that the business reaches a breakeven point. On
top of this, it gives the business a suitable platform to consider the profit after changes in the
operating costs and revenue (Kellie, 2020). Nonetheless, this article highlights that there are
several assumptions that CVP makes in the region in which the business operates.
Article by ERAH
This article states that an appropriate understanding of the cost and revenue behavior plays a
vital role in helping the policymakers understand the relationship between the costs, profits, and
revenues in a project. On top of this, the article also elucidates the concept of cost-volume
analysis by looking into the literature related to the concept and sheds light using the
hermeneutic approach. This is where the focus is accorded to the interpretation and elucidation
of a piece of literature so that it can be easily understood by others (ERAH). In addition, this
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