Cost Volume Profit Analysis

Cost Volume Profit Analysis




Break-even analysis involves the analysis of cost-volume-profit relationships of products and services in order to make operating decisions to which the break-even point is critical as the benchmark for determining the profitability of the product/service.  This assessments focus on the ability of the candidate to apply the principles of break-even analysis with specific reference to:

  • understanding the concept of break-even analysis as a management tool
  • understanding the calculation and interpretation of the break-even point
  • applying the break-even point to make operating decisions
  • calculating break-even points for multiple products without constraints
  • preparing a production plan with a single operating constraint


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