Question

1. What is CVP?

2. Under what conditions would management monitor the variables of the CVP and why?

3. What important uses can CVP be utilized?

4. With both the mathematical calculations and the graphical ones what does the break even point provide management?

Answer 1

1)What is CVP

Answer. Central venous pressure is the blood pressure in the venae cavae, near the right atrium of the heart.

2 )Under what conditions would management monitor the variables of the CVP and why?

.answer CVP analysis provides a simple system of calculations that managers use to estimate the financial effects of a broad range of decisions.

3);What important uses can CVP be utilized?

Answer. CVP analysis can help companies determine their contribution margin, which is the amount remaining from sales revenue after all variable expenses have been deducted. The amount that remains is first used to cover fixed costs, and whatever remains afterward is considered profit.