Top Posters
Since Sunday
43
23
23
22
21
20
20
19
19
18
18
18
New Topic  
wrote...
Posts: 293
Rep: 0 0
2 years ago
Cost-volume-profit analysis is a powerful management and budgeting tool. What does CVP analysis allow you to do? Give two examples of how management may utilize this tool.
Read 86 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 726
Rep: 1 0
2 years ago
Sign in or Sign up in seconds to unlock everything.
 CVP analysis allows us to determine the level of sales that are necessary to break-even and what sales are necessary to meet a targeted profit. It gives us the relationship between cost and volume and the effect on profit. So if a company had to change one of those components management can calculate the effect it would have on the other two.
For the instructorexamples will be different. Some key points to look for in the discussion on budgeting is students realizing that having the knowledge of the break-even point is important but it must also be integrated with how is the company going to attain break-even and then target profit.         
This verified answer contains over 120 words.
1
Related Topics
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  390 People Browsing
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 75

Previous poll results: What's your favorite coffee beverage?
Related Images
 602
 93
 50

▶️ Video: Dorsal Recumbent Position

For a complete list of videos, visit our video library