CVP and Computer Applications

The broad availability of personal computers encourages more managers to apply cost volume profit analysis. Computers can quickly create the computations for changes in the assumptions recognizing proposed projects as an example of, computer spreadsheets permits managers to find out the most profitable combination of selling process, fixed and variable cost volume. A manager enters into the computer various numbers for price and cost in an equation based on CVP associations to yield target income for each combination since a computer's speed and accuracy in providing this information the manager can choose the most profitable actions.