Unit 5: Cost-Volume-Profit Analysis
In this unit we explore the relationships that revolve around costs, volume, and profit (CVP), and how companies plan for profitability. We examine how business managers use costs, volume, and profit to calculate how much they need to produce to achieve the break-even point and generate future profits. For example, a chief executive officer of a company that manufactures snowboards should know how many boards they need to produce to cover their costs and earn a decent profit by the end the month.
Breakeven analysis is synonymous with CVP analysis and identifies how changes in key variables impact financial projections and profitability.
Completing this unit should take you approximately 5 hours.
5.1: Cost-Volume-Profit Analysis
5.2: Using Cost-Volume-Profit Models for Analysis
5.3: Cost-Volume-Profit Considerations