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Explain each of the three elements of cvp analysis

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Reference no: EM132565158

Cost-volume-profit analysis, or CVP, is something companies use to figure out how changes in costs and volume affect their operating expenses and net income.?In other words, CVP is a methodical analysis of the dynamic inter-relationship between?selling?prices, sales and production volume, cost expenses, and profits.

Respond to the following in a minimum of 175 words:

Question 1: Explain each of the three elements of CVP analysis.

Question 2: Discuss how managers use CVP analysis.

Reference no: EM132565158

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