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Location cost-volume analysis is a financial technique used to evaluate the costs associated with different locations for a business. It assesses the trade-offs between fixed and variable costs in relation to production volume, helping companies determine the most cost-effective site for operations. By analyzing factors such as transportation, labor, and facility expenses, businesses can make informed decisions that align with their operational and financial goals. This analysis is particularly useful in industries where location significantly impacts costs and logistics.
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What is the cost volume profit analysis?
cvp is the analysis that deals with how profits and cost change with a change in volume
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 the purpose of Cost volume profit analysis?
b
What is another name for break-even analysis?
Cost-volume-profit analysis (CVP), or break-even analysis,
What are the advantages of cost volume profit analysis?
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.
What is the cost volume profit analysis?
cvp is the analysis that deals with how profits and cost change with a change in volume
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 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
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.
What is the purpose of Cost volume profit analysis?
b
What is another name for break-even analysis?
Cost-volume-profit analysis (CVP), or break-even analysis,
How Cost Volume Profit cost-volume-profit analysis would help managers in their decision making?
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.
What are the advantages of cost volume profit analysis?
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.
What is cost-volume-profit analysis based on?
The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
Compare marginal costing versus cvp analysis?
CVP stands for Cost-Volume-Profit.
The cost method that can be used most easily with the break-even analysis and other cost volume-profit techniques is?
process costing
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.
