Which tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs?.

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Heavenpeoples9631idn Heavenpeoples9631idn

04-07-2022
Business

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Which tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs?.

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Okpalawalter8idn Okpalawalter8idn · Answer 1 · 2022-07-18T11:40:01-04:00

The tool that can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs is The CVP analysis. This is further explained below.

What is CVP analysis?

Generally, Changes in both variable and fixed expenses may have a significant impact on a company's bottom line, and a cost-volume-profit (CVP) analysis can help you understand the relationship between the two.

In conclusion, The CVP analysis is a tool that may be used to quickly determine the change in profit brought on by a change in sales price, sales volume, variable costs, or fixed costs.

Sagot :

What is CVP analysis?

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