Abstract:

Cost-volume-profit (CVP) analysis is an important tool that provides the management with useful information for the managerial planning and decision-making. Profit of a business firm is the result of interaction of many factors. It is used to identify the levels of operating activity needed to avoid losses, achieve targeted profits, plan future operations, decide on expansion or contraction plans, monitor organizational perfosrmance and analyze operational risk as they choose an appropriate cost structure to help in the decision making process to sustain the firm

Description:

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