Using Cost-Volume-Profit Analysis in Decision Making
AbstractThe 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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Bibliographic InfoArticle provided by University of Petrosani, Romania in its journal Annals of the University of Petrosani - Economics.
Volume (Year): 9 (2009)
Issue (Month): 3 ()
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Web page: http://www.upet.ro/
cost-volume-profit; marginal contribution; break-even; the equation method; the marginal contribution method; graphical method;
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