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CVP

 
Accounting Dictionary: Assumptions Underlying Cost-Volume-Profit (CVP) Analysis

Assumptions that limit the usefulness of the basic Break-Even and Cost-Volume Profits (CVP) models. They are: (1) The behavior of both sales revenue and expenses is linear throughout the entire relevant range of activity; (2) There is only one product or service or a constant Sales Mix (3) Inventories do not change significantly from period to period; (4) Volume is the only factor affecting sales and expenses.

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Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved.  Read more
Medical Dictionary. The American Heritage® Stedman's Medical Dictionary Copyright © 2002, 2001, 1995 by Houghton Mifflin Company Read more
Veterinary Dictionary. Saunders Comprehensive Veterinary Dictionary 3rd Edition. Copyright © 2007 by D.C. Blood, V.P. Studdert and C.C. Gay, Elsevier. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "CVP" Read more