Cost-Volume-Profit (CVP) Analysis helps businesses understand how changes in costs and volume affect a company's operating income and net income, providing critical insights for decision-making in financial planning and strategy.
Cost-Volume-Profit (CVP) analysis is a method used by businesses to understand the inter-relationships between cost, volume, and profit. It helps in decision-making by determining the break-even point, analyzing the profit potential of a company, and evaluating the impact of different levels of sales and production.
