What Is Meant By Cvp Analysis?
CVP analysis stands for Cost/Volume/Profit analysis. The working of the company is easily sorted out through this. It is used for business purposes to find out the financial condition of a company. It forms a ratio between cost, volume, profit and sales. It is usually generated in a form of a graph. It is an essential tool in the business world as many future decisions are based on it. It also helps in creating the budget for the current and the next year. It is advisable to hire professional accountant in such cases. Operation leverage and contribution marginal analysis are used for finding out CVP.
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- What Is Meant By Cvp Analysis?
