Archive | Cost-Volume Profit Analysis

Cost-Volume-Profit Analysis | Cost Accounting

In this article we will discuss about Cost-Volume-Profit Analysis:- 1. Meaning Cost-Volume-Profit Analysis 2. Objectives of Cost-Volume-Profit Analysis 3. Assumptions. Meaning Cost-Volume-Profit Analysis: Earning of maximum profit is the ultimate goal of almost all business undertakings. The most important factor influencing the earning of profit is the level of production (i.e., volume of output Cost-volume-profit […]

P/V Ratio, Break Even Point and Margin of Safety

Learn about the comparison between p/v ratio, break even point and margin of safety. In order to see the effect of certain changes on P/V ratio, breakeven point and margin of safety, the following data is assumed: From the above it is clear that if: (i) There is increase in selling price per unit it […]

5 Main Elements of Cost-Volume-Profit Analysis | Cost Accounting

The following points highlight the five main elements of cost-volume-profit analysis. The elements are: 1. Marginal Cost Equation 2. Contribution 3. Profit/Volume (P/V) Ratio 4. Break Even Point 5. Margin of Safety. Cost-Volume-Profit Analysis: Element # 1. Marginal Cost Equation: For the sake of convenience, elements of costs can be written in the form of […]

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