Uses of cost volume profit analysis, Cost Accounting

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USES OF CVP ANALYSIS

1. .It allows preparation of flexible budgets.

2. It provides help in forecasting accurate profit.

3. It aids in formulating price policy.

4. It is helpful in performance appraisal/evaluation and management control.

5. It is highly useful in managerial decision making

6. It helps in determining the amount of overhead cost to be charged to various levels of operations.

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