Week 3 Disucssion Variable Costing 2

Week 3 Disucssion Variable Costing 2 - what price to sell...

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Cost Volume Process Analysis uses the following five elements to help managers understand the correlation between cost, volume, and profit: 1. Mix of Products Sole 2. Total Fixed Cost 3. Per unit Variable Cost 4. Volume of Activity 5. Prices This tool is used to help managers make decisions on things such as what products to make and
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Unformatted text preview: what price to sell them at. By using CVP analysis managers are able to see the following in order to make manufacturing and marketing decisions for their company:-Change in fixed and variable cost-Change is sales volume and prices Source: http://www.accountingformanagement.com/cost_volume_profit.htm...
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