Explain the components of cost-volume-profit analysis.
Not what you're looking for?
Explain the components of cost-volume-profit analysis. Use cost-volume-profit analysis and break-even analysis to make business decisions.
Purchase this Solution
Solution Summary
Your tutorial is 255 words and explains CVP and gives two examples of how CVP is used in businesses.
Solution Preview
Cost volume profit analysis is a process of isolating the variable and fixed portions of expenses so that you can see how volume impacts profits. Why does that matter? Sales volume does not cause fixed costs to shift (within the relevant range), so profit moves only in relation to sales price and variable costs. Since all costs do not ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.