Cost–Volume–Profit Analysis
What is cost–volume–profit (CVP) analysis, and how is it
used for decision making?
• Q2: How are CVP calculations performed for a single
product?
• Q3: How are CVP calculations performed for multiple
products?
• Q4: What assumptions and limitations should managers
consider when using CVP analysis?
• Q5: How are the margin of safety and operating leverage
used to assess operational risk?
