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Klio2033 [76]
2 years ago
11

CVP analysis allows companies to easily identify the change in profit due to changes in: Multiple select question. costs. volume

. location. management. selling price.
Business
1 answer:
lana66690 [7]2 years ago
7 0

Cost Volume Profit (CVP) analysis, also known as break-even analysis, is a financial planning tool that executives use to set the short-term strategy for their business. It informs corporate decision makers of the (short-term) impact on profit of changes in selling prices, costs, and quantities.

CVP analysis aims to determine the outputs that drive company value, highlight the impact of fixed costs, break-even points, target profits, and determine sales figures and sales forecasts. CVP analysis makes pricing decisions and pricing structures easier.

CVP analysis estimates how changes in a company's fixed and variable costs, sales volume, and price affect the company's profits. This is a very powerful tool in finance and accounting. It is one of the most commonly used tools in management accounting to help managers make better decisions.

Learn more about CVP at

brainly.com/question/26654564

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