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Using Cost-Volume-Profit Analysis in Decision Making

Author

Listed:
  • Gabriela Buşan

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

  • Ionela-Claudia Dina

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

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?

Suggested Citation

  • Gabriela Buşan & Ionela-Claudia Dina, 2009. "Using Cost-Volume-Profit Analysis in Decision Making," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(3), pages 103-106.
  • Handle: RePEc:pet:annals:v:9:i:3:y:2009:p:103-106
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