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there no difference between break even profit analysis and cost volume profit analysis
Cost-volume-profit analysis (CVP), or break-even analysis,
b
One advantage of cost volume profit analysis is so that businesses can plan for the future. A business might be wanting to expand, but if the profit margin is too low, they may have to wait to expand.
cvp is the analysis that deals with how profits and cost change with a change in volume
there no difference between break even profit analysis and cost volume profit analysis
limitatios for profit sensitivity analysis
cost volume profit is use anlyse how cost and profit change with change in volume of activity
Cost-volume-profit analysis (CVP), or break-even 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.
b
Firms produce multiple products because the aim is to be a producer that maximizes profit. Firms produce multiple products to get maximum profit.
One advantage of cost volume profit analysis is so that businesses can plan for the future. A business might be wanting to expand, but if the profit margin is too low, they may have to wait to expand.
Profit-Cost=Income
cvp is the analysis that deals with how profits and cost change with a change in volume
12500 . What multiple of what currency?
A number of limitations are commonly mentionedwith respect to CVP analysis:1. The analysis assumes a linear revenue functionand a linear cost function.2. The analysis assumes that what is produced issold.3. The analysis assumes that fixed and variablecosts can be accurately identified.4. For multiple-product analysis, the sales mix isassumed to be known and constant.5. The selling prices and costs are assumed o beknown with certainty.