Cost-Volume-Profit Analysis [with Formula, Assumptions and Examples]! Cost-volume-profit (CVP) analysis is a technique that managers use for short-term profit planning. Fixed costs, which in total remain fixed within a relevant range and within a short period in which prices are not expected to change, do not change with change in the activity level and therefore may be considered as given [...]
Application of Cost Volume Profit Relationship in Decision Making! Now let us take a Few Decision Situations: i. Buying a Spares Versus Taking a Factory on Operating Lease: CVP analysis is carried using cost variability. Fixed cost remains fixed within a range. All short run decisions is linked to the principle of profit maximization given the cost structure comprising of [...]
This article throws light upon the top three theories for the analysis of public expenditure growth. The theories are: Theory # 1. Wagner's Hypothesis: Adolf Wagner a noted German political economist (1835-1917) propounded an empirical law to analyses and explains the trend in the growth of public expenditure. Wagner argued that a functional, cause and effect relationship exists between the [...]