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Explain how CVP analysis can be used for managerial planning.
Cornerstones of Cost Management (C...
Solutions
Cornerstones of Cost Management (C...
Explain how CVP analysis can be used for managerial planning.
Describe the role of CVP in managerial planning.
Explanation of Solution
Cost Volume Profit Analysis (CVP Analysis): The Cost volume profit (CVP) analysis is helpful in determining how any type of change in cost determines company’s income.
The CVP enables the managers to consider various factors like profit, price, volume, cost, sales mix and so on and helps in taking various management decisions.
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