ASSIGNMENT: COST, VOLUME, AND PROFIT FORMULAS

Assignment: Cost, Volume, and Profit Formulas

Assignment: Cost, Volume, and Profit Formulas

Components of Cost-Volume-Profit Analysis

The cost - volume - profit (CVP) provides a panoramic view of the financial planning process. The CVU is formed on the simplifying assumptions about the behavior of costs. Cost factors - income factors. Factor is defined as a change cost factor that will cause a change in the total cost of a related cost object. An income factor is anything that affects revenue. There are many factors of income such as changes in price, product quality and marketing displays affect total revenues. ...