CostVolumeProfit Analysis
Cost-Volume-Profit (CVP) Analysis is a financial management tool that examines the relationship between costs, sales volume, and profit. It helps businesses analyze how changes in sales levels, prices, and costs affect their profitability. CVP analysis is used to make decisions regarding pricing strategies, product mix, and budget planning. By understanding the cost structure and profit potential of a business, managers can make informed decisions to maximize profitability and achieve financial goals.