State the factors of cvp, Managerial Accounting

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State the factors of CVP

The three factors of CVP analysis I e cost volume and profit are interconnected and dependent on one another . for example profit depends upon sales selling price to a large  extent depends upon cost and cost depends upon volume of production  as it is only the variable cost that varies directly with production whereas fixed cost remains fixed regardless of the volume production . in cost volume profit analysis an attempt is made to analysis the relationship between variation in cost with variation in volume .

 


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