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Advise the director on why cvp analysis is an important

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Reference no: EM132984788

Question - The director of XYZ Company queried the relevant of Cost Volume Profit (CVP) analysis as a tool that evaluates the effects of changes in cost, volume and selling price on profits. As the director is new and does not have the financial knowledge pertaining to CVP analysis, he approaches you for advice.

Required - Advise the director on why CVP analysis is an important part of a company's planning process and management decision making.

Reference no: EM132984788

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