Archive | Cost-Volume Profit Analysis

In this article we will discuss about Cost-Volume-Profit Analysis:- 1. Meaning Cost-Volume-Profit Analysis 2. Objectives of Cost-Volume-Profit Analysis 3. Assumptions. Meaning Cost-Volume-Profit Analysis: Earning of maximum profit is the ultimate goal of almost all business undertakings. The most important factor influencing the earning of profit is the level of production (i.e., volume of output Cost-volume-profit analysis examines the relationship of [...]

Learn about the comparison between p/v ratio, break even point and margin of safety. In order to see the effect of certain changes on P/V ratio, breakeven point and margin of safety, the following data is assumed: From the above it is clear that if: (i) There is increase in selling price per unit it will increase the P/V ratio [...]