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What Is Cost-Volume-Profit Analysis (CVP)?

By Kristi WaterworthUpdated Dec 31, 2024 at 4:39 PM

Key Points

  • Cost-volume-profit analysis aids in calculating break-even points and necessary unit production.
  • It allows setting product prices based on desired profit and production costs.
  • Significant assumptions may limit its real-world accuracy, impacting long-term planning.

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