Cost-Volume-Profit and Breakeven Analysis

Cost-Volume-Profit and Breakeven Analysis

Using Price-Volume-Cost (PVC) & Breakeven Analysis, this course explains how to understand the results of changes in pricing, volumes, and costs on financial performance and profitability.

Cost-volume-profit (CVP) analysis helps managers understand the interrelationships among cost, volume, and profit by focusing their attention on the interactions among the prices of products, volume of activity, per unit variable costs, total fixed costs, and mix of products sold. It is a vital tool used in many business decisions such as:

• Deciding what products to manufacture or sell,
• What pricing policy to follow,
• What marketing strategy to employ, and
• What type of productive facilities to acquire.

If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: Cost-Volume-Profit and Breakeven Analysis. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an ‘approved-by-the-governing-body’ CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.

This course explains the results of changes in pricing, volumes, and costs on financial performance and profitability.

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What you will learn

• Explain how changes in activity affect contribution margin and net operating income.
• Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.
• Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.

Rating: 3.9

Level: Beginner Level

Duration: 1 hour

Instructor: Illumeo Learning