A Comparative Study On The Application Of Cost Volume Profit Analysis In Management Decisions Of Manufacturing Organizations

Cost–Volume–Profit (C–V–P) analysis is the analysis of the cost evolution models, which points out the relations between cost, production volume and profit. Cost-Volume-Profit (CVP) analysis from the accounting profession perception is a managerial accounting technique that is concerned with the effect of sales volume and product costs on operating profit of a business. According to Hilton, (2000:312), cost-volume-profit (CVP) analysis focuses on the number of units sold as the sole cost and revenue driver. In other words, sales revenue is assumed to be linear in terms of quantity of the units…