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How Cost Volume Profit cost-volume-profit analysis would help managers in their decision making?
Wiki User
∙ 9y ago
Cost volume profit analysis is a basic financial analysis tools to determine the underlying profitability of a company. Its components include activity level, price per unit, variable cost per unit and total fixed cost.
Wiki User
∙ 9y ago
Wiki User
∙ 10y agoCost volume profit analysis shows us the behavior of cost attached in production. it is useful in comparing different projects for the variable cost and profit
Wiki User
∙ 9y agoIt helps managers in following way:
1 - To see the effect of inrease or decrease in cost on revenues
2 - To determine price strategies
3 - For operational effeciancy etc.
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Why managers need to know economics?
Hi this is his role is to make sure the company makes profit
The test of an entrepreneurial decision is whether or not?
The test is whether or not the decision results in a profit.
What is a profit constraints?
In economics, profit constraints basically have two categories. Non-binding and binding profit constraints. Non-binding is more likely preferred by managers who pursue an 'enough profit level' comparing with a higher chosen by owners. This finally gives rise to a bind and a non-bind curve that shows a profit of maximum total revenue level below or above the profit constrain that is determined by owners and managers respectively.
What is the cost or benefit that motivates an economic decision?
A. Innovation B. Incentive C. Profit
The maximization of profit and the minimization of losses is the primary factor affecting the economic decision making of?
workers
What criteria will guide your decision process as you consider your next opportunity?
The best way to make a decision is by performing a loss-profit analysis. Managers and economists know to choose that option which tends to maximize their profit or minimize their loss, relative to the other choices.
Why managers need to know economics?
Hi this is his role is to make sure the company makes profit
What are the differences between cost volume profit analysis and break even profit analysis?
there no difference between break even profit analysis and cost volume profit analysis
What is profit sensitivity analysis?
limitatios for profit sensitivity analysis
Advantages and disadvantages of cost-volume-profit analysis?
A key advantage to cost-volume-profit analysis is the fact that it allows managers to more easily answer questions and provides details of company activity. A large drawback is the fact that CVP is limited to its amount of information it can provide.
Why isn't profitability a concern just for managers?
employee's still need there profit just as well the managers do.
What is break even analysis and how does it work with cost volume profit analysis?
cost volume profit is use anlyse how cost and profit change with change in volume of activity
What is another name for break-even analysis?
Cost-volume-profit analysis (CVP), or break-even analysis,
How would you define cost-volume-profit analysis?
Cost-volume-profit analysis (CVP), or break-even analysis, is used to compute the volume level at which total revenues are equal to total costs.
The test of an entrepreneurial decision is whether or not?
The test is whether or not the decision results in a profit.
What is the purpose of Cost volume profit analysis?
b
Why do managers plan in organizations?
to effectively manage the workplace and maximise efficiency and profit
