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Cost Volume Profit Analysis and Organizational Development

When conducting a CVP analysis how it can be helpful in organizational development? How does this tool help you determine pricing and R&D budgets? Consider the concepts of Market Saturation, price elasticity and price-demand relationships.

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In answering this question, one of the first things you want to look at is the definition of CVP analysis. Also, you need to examine the uses or purposes of CVP analysis. After looking at the definition of CVP analysis and its purposes then you will be better able to tell how it can be helpful to organizational development. You know that organizational development by itself is the process of improving organizations. This process is carefully planned and implemented to increase an ...

Solution Summary

This solution gives a detail account of how Cost Volume Profit (CVP) Analysis can be helpful in organizational development. An explanation is first given as to what CVP Analysis is and what are its purposes; then information is provided as to how CVP Analysis becomes useful when determining pricing and preparing budgets. Reference is also made in this solution to market saturation and price elasticity, and how or whether CVP Analysis is relevant under each. Links are also given in this solution for further reading.