5 Main Elements of Cost-Volume-Profit Analysis | Cost Accounting
The following points highlight the five main elements of cost-volume-profit analysis. The elements are: 1. Marginal Cost Equation 2. Contribution 3. Profit/Volume (P/V) Ratio 4. Break Even Point 5. Margin of Safety. Cost-Volume-Profit Analysis: Element # 1. Marginal Cost Equation: For the sake of convenience, elements of costs can be written in the form of an equation as follows: Sales [...]