Description
How can CVP Analysis be used to predict future costs and profitability? Describe how CVP analysis is used, or could be used, at your current place of employment. If you have not worked for a company that might use CVP Analysis, you may choose a well-known company and describe how you envision that company using CVP Analysis. Try to discuss a concept associated with CVP not already addressed by your classmates. Consider using an article to summarize or apply the CVP concepts. To participate in follow-up discussion, choose one of the topics/concepts that a classmate has posted and provide your own reaction to it, add to what they posted or provide a professional disagreement to their posting.
Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.
APA. 300 words at lest on reference.
Explanation & Answer
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Running head: COST VOLUME PROFIT
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COST VOLUME PROFIT:
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COST VOLUME PROFIT
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CVP (cost volume profit) analysis is a cost accounting method that focuses on the impact
that different levels of volume and cost will end up having on a company’s operating profit.
Through this method, the company is able to determine the break-even point for its cost structure
as well as sales volume, two aspects which of the essence to the company’s management when
making economic decisions (Bashir, Batool & Rizwan, 2011).
CVP analysis can be used to ...