Cost profit volume analysis, Cost Accounting

Assignment Help:

COST PROFIT VOLUME ANALYSIS

Cost profit volume (CVP) analysis is an essential tool for profit planning. It can be explained  as - ' a managerial tool showing the relationship among various ingredients of profit planning, that is, cost (fixed and variable), volume and selling price of activity.  It presents information regarding-

1. Quantity of production and sales for a target profit level

2. Behavior in relation to volume

3. Amount of profit for a projected sales volume

4. Sensitivity of profits due to variation in output

5. Volume of production or sales, where the business will break even.


Related Discussions:- Cost profit volume analysis

Cost volume analysis, Production of a particular product costs $50 per mate...

Production of a particular product costs $50 per material, $80 per labour and variable overhead is 75% of labour cost. If the selling price per unit is $230 and fixed cost amounts

Business, Purchase of office supplies.

Purchase of office supplies.

Cost benefit approach - terms used in cost accounting, Cost Benefit Approac...

Cost Benefit Approach - Terms Used in Cost Accounting Is the primary criterion for selecting with alternative accounting approaches? There is a direct relationship in a co

Activity-based costing and throughput accounting, The  basic  principles ...

The  basic  principles  of  standard  costing  and  variance  analysis  may  be  adapted  to  the needs of  relatively  new  methods  of  accounting  such  as  activity-based  cost

Importance of cost classification, Importance of Cost Classification A...

Importance of Cost Classification Analysis of cost behaviour is significant to all organizations for effective management. It is since many organizations have a unique cost st

Prepare cash budget of a company, Prepare Cash Budget of a Company The...

Prepare Cash Budget of a Company The given information concerned to the proposed budget for a company for the months ending on 31 December 1996. Additional Information

Estimate cost of financing, Calculate the equal monthly payments and the co...

Calculate the equal monthly payments and the cost of financing on a 10-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe

Example of high - low method of cost estimation, Example of High - Low Meth...

Example of High - Low Method of Cost Estimation Based on the performance, such you have been provided along with the given information regarding ABC Ltd for the year ended on

Calculate the payback and discounted payback period, Lapsol limited manufac...

Lapsol limited manufacture electrical appliances for the export market. The management of the company are considering investing in one of two possible capital expenditure projects.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd