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Using Cost-Volume-Profit Analysis in Decision Making

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Author Info

  • Gabriela Buşan

    („Constantin Brâncuşi” University of Tg.-Jiu, Romania)

  • Ionela-Claudia Dina

    („Constantin Brâncuşi” University of Tg.-Jiu, Romania)

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    Abstract

    The cost-volume-profit study the manner how evolve the total revenues, the total costs and operating profit, as changes occur in volume production, sale price, the unit variable cost and / or fixed costs of a product. Managers use this analysis to answer different questions like: How will incomes and costs be affected if we still sell 1.000 units? But if you expand or reduce selling prices? If we expand our business in foreign markets?

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    File URL: http://upet.ro/annals/economics/pdf/2009/20090310.pdf
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    Bibliographic Info

    Article provided by University of Petrosani, Romania in its journal Annals of the University of Petrosani - Economics.

    Volume (Year): 9 (2009)
    Issue (Month): 3 ()
    Pages: 103-106

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    Handle: RePEc:pet:annals:v:9:i:3:y:2009:p:103-106

    Contact details of provider:
    Web page: http://www.upet.ro/

    Related research

    Keywords: cost-volume-profit; marginal contribution; break-even; the equation method; the marginal contribution method; graphical method;

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