Using the Internet, review at least 3 articles on Profit-Cost-Volume relationship. Summary (the articles in your own words.
As a manager, why is Profit-cost-volume important in planning? Support your response with numerical example(s)
Profit-cost-volume is method of cost accounting that shows the impact of varying cost or sale on profit. It is also known as breakeven analysis.
This method use some assumptions like fixed cost,sale price per unit & variable cost per unit remain same.
Formula
Breakeven sale= fixed cost/contribution margin per unit
Profit -cost-volume important in planning because it tells us how much units we need to sell to at least cover fixed cost.It helps in making short term decision.
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