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An analysis of costs and revenue to determine whether or not a venture will make a profit, and, if so, how much. This is important information in deciding on whether to make an investment. The length of time required to repay the initial investment can be a critical factor.

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What is the SWOT analysis of maruti Suzuki?

ownership ,capital/profitability of maruti suzuki


Why is it more accurate to describe the subject matter as cvp analysis rather than as breakeven analysis?

CVP analysis, or cost-volume-profit analysis, provides a broader framework than breakeven analysis by examining the relationships between costs, sales volume, and profit across various levels of activity. While breakeven analysis focuses specifically on the point where total revenues equal total costs, CVP analysis also considers how changes in costs, prices, and volume affect overall profitability. This comprehensive approach helps businesses make informed decisions about pricing, product mix, and cost control, making CVP analysis a more accurate and versatile tool for financial planning and analysis.


Is break even analysis useful in sensitivity analysis?

Yes, break-even analysis is useful in sensitivity analysis as it helps identify the point at which total revenues equal total costs, providing a clear benchmark for evaluating how changes in key variables (such as price, costs, or sales volume) impact profitability. By understanding the break-even point, businesses can assess the risk associated with different scenarios and make informed decisions regarding pricing strategies, cost management, and sales targets. This analysis enables organizations to visualize how sensitive their financial outcomes are to fluctuations in these factors.


A measure of profitability is the?

current retio


Which is an indicator of profitability?

Current ratio

Related Questions

What is CO PA in SAP?

Controlling - Profitability Analysis


The percent of fixed assets to total assets is an example of?

profitability analysis


What is the SWOT analysis of maruti Suzuki?

ownership ,capital/profitability of maruti suzuki


What is feasibility analysis?

The analysis of how feasable something is. i.e. can you afford it. whilst looking at other factors such as long term profitability.


What is trend analysis?

Trend signifies future possibilities . The trend analysis acquaint us with the profitability and the short term as well as long term liquidity of business


What are the limitations of traditional management accounting?

1-internal focus 2- Profitability analysis on products only


When was Gerard Arpey promoted to a director at American Airlines?

1987-1988, director of airline profitability analysis; 1988-1989, managing director of financial analysis and planning


A. Define customer portifolio analysis. B.what is the importance of customer portifolio analysis?

This is a very good site, Concise and Precise. http://www.thetimes100.co.uk/theory/theory--analysis-profitability-liquidity-performance--114.php


What is some information about ratio analysis?

Ratio analysis is a quantitative procedure of obtaining a look into a firm’s functional efficiency, liquidity, revenues, and profitability by analysing its financial records and statements. Ratio analysis is a very important factor that will help in doing an analysis of the fundamentals of equity. Analysts and investors make use of the methods for ratio analysis to study and evaluate the fiscal wellbeing of businesses by closely examining the historical performance and monetary statements.


types of ratio analysis?

generally, there are five types of ratio analysis which are done by companies. they are:a) Profitability analysisb) Liquidity analysisc) Solvency analysisd) Asset efficiency analysise) Market value analysis


What is the Hurst method of analyzing a menu?

The Hurst method of analyzing a menu focuses on evaluating the performance of individual menu items based on their popularity and profitability. It classifies items into four categories: stars (high popularity and profitability), plowhorses (high popularity but low profitability), puzzles (low popularity but high profitability), and dogs (low popularity and profitability). This analysis helps restaurateurs make informed decisions about which items to promote, modify, or remove, ultimately enhancing overall menu performance and customer satisfaction.


Why is it important to separate operating assets from financial assets?

Operating assets contribute to the day to day functions of the business. While financial assets add value to the business, they do not account for profitability of the business. Financial analysis models only use the operating assets to determine future profitability.