Cost-Volume-Profit and Breakeven Analysis

Course details

Using Price-Volume-Cost (PVC) & Breakeven Analysis, this course explains how to understand the results of changes in pricing, volumes, and costs on financial performance and profitability.

Cost-volume-profit (CVP) analysis helps managers understand the interrelationships among cost, volume, and profit by focusing their attention on the interactions among the prices of products, volume of activity, per unit variable costs, total fixed costs, and mix of products sold. It is a vital tool used in many business decisions such as:

• Deciding what products to manufacture or sell,
• What pricing policy to follow,
• What marketing strategy to employ, and
• What type of productive facilities to acquire.