cvp analysis focuses on how profits are affected by __.

cvp analysis focuses on how profits are affected by __.

CVP analysis focuses on how profits are affected by following five factors namely

  •  1. selling price,
  • 2. Sales Volume,
  • 3. unit variable cost,
  • 4. total fixed costs ,
  • 5. mix of products sold.

Explanation: cvp analysis focuses on how profits are affected by

Cost-Volume-Profit (CVP) Analysis: What Is It?
A cost accounting technique called cost-volume-profit (CVP) analysis examines the effects that different cost and volume levels have on operational profit.

An approach to determining how changes in variable and fixed expenses impact a company’s profit is through cost-volume-profit (CVP) analysis.
Companies can utilize CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).
CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.

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