Explain the techniques of cvp analysis, Managerial Accounting

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Techniques of CVP Analysis 

The CVP  analysis deals with the price costs structure and the sales volume and identifies the profit figure with one or other combination of these variables . the key  elements in the CVP  analysis are selling price sales volume variable cost per unit total fixed costs and the sales mix (if the firm is dealing with more than one product at a time ).there are two basic techniques of CVP analysis these are :

1) The contribution margin analysis

2) Profit volume ratio

3) The break even analysis .

 


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