What is CVP analysis, and how is it useful to managers?
Question:
What is CVP analysis, and how is it useful to managers?
Cost Accounting:
Cost accounting is one of the branches of accounting. This branch of accounting is mainly focused on the cost related to the production activities. Cost computed in this branch contains fixed, variable, and semi-variable costs.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerCVP Analysis:
CVP Analysis or Cost-Volume-Profit Analysis is the method that helps in finding out the changes in the profit is affected by which...
See full answer below.
Learn more about this topic:
from
Chapter 9 / Lesson 8Cost-volume-profit analysis (CVP) seeks to better understand the relationship between costs, revenue, and volume of sales. Explore the components in these analyses, the assumptions they take, and see these through the CVP income statement.