Daffodil International University

Faculties and Departments => Accounting – The Language of Business => Business Administration => Business & Entrepreneurship => Managerial Accounting => Topic started by: Repon on July 15, 2018, 06:06:09 PM

Title: Cost Volume Profit (CVP) Analysis
Post by: Repon on July 15, 2018, 06:06:09 PM
Cost Volume Profit Analysis

Cost-Volume-Profit (CVP) analysis is a managerial accounting technique that is concerned with the effect of sales volume and product costs on operating profit of a business. It deals with how operating profit is affected by changes in variable costs, fixed costs, selling price per unit and the sales mix of two or more different products.

CVP analysis has following assumptions:
1. All cost can be categorized as variable or fixed.
2. Sales price per unit, variable cost per unit and total fixed cost are constant.
3. All units produced are sold.

Where the problem involves mixed costs, they must be split into their fixed and variable component by High-Low Method, Scatter Plot Method or Regression Method.
Title: Re: Cost Volume Profit (CVP) Analysis
Post by: MD. ABDUR ROUF on July 22, 2018, 05:10:57 PM
Congrats
Title: Re: Cost Volume Profit (CVP) Analysis
Post by: drrana on July 23, 2018, 01:27:06 PM
good one
Title: Re: Cost Volume Profit (CVP) Analysis
Post by: munna99185 on October 18, 2018, 03:17:24 PM
Informative post.

Thanks for sharing.

Sayed Farrukh Ahmed
Assistant Professor
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University