Ch 11: Cost-Volume-Profit Analysis Overview

About This Chapter

This chapter serves as a great resource for quickly and effectively strengthening your knowledge of cost-volume-profit analysis. Fun lessons provide an in-depth examination of this subject, and multiple-choice quizzes and a practice exam test your comprehension.

Cost-Volume-Profit Analysis Overview - Chapter Summary

Our top instructors have developed high-quality, informative lessons that simplify the process of studying cost-volume-profit (CVP) analysis. The lessons are short, easy to navigate and always available for review, helping you understand CVP analysis in no time. Closely examine concepts that include the break-even analysis, margin of safety, operating leverage and incremental analysis. Use short quizzes to gauge your knowledge of the lessons you review. Clarify information you don't fully grasp by sending questions to our experts, and get a comprehensive review of the chapter by taking the practice exam.

When finished, you will be ready to:

  • Summarize how the relevant range affects cost, volume and profit
  • Evaluate the use of CVP analysis to determine the relationship between company costs, revenue and sales volume
  • Analyze and calculate the break-even analysis
  • Calculate margin of safety in accounting
  • Determine a business' sales mix with limited resources
  • Conclude the impact a cost structure has on net income
  • Break down the importance of operating leverage
  • Explain the use of incremental analysis

8 Lessons in Chapter 11: Cost-Volume-Profit Analysis Overview
Test your knowledge with a 30-question chapter practice test
Significance of the Relevant Range to CVP Relationships

1. Significance of the Relevant Range to CVP Relationships

Management must understand the cost of producing each item at different volumes of production. In this lesson, you'll learn how the relevant range impacts cost, volume and profit.

Cost-Volume-Profit Analysis & Income Statements

2. Cost-Volume-Profit Analysis & Income Statements

Cost-volume-profit (CVP) analysis is one way for management to determine the relationship that exists between a company's costs, its revenue, and its sales volume. In this lesson, we'll take a look at how a restaurant might use CVP to look at its revenue.

Break-Even Analysis: Definition & Example

3. Break-Even Analysis: Definition & Example

Performing a break-even analysis can help you make decisions regarding how much of your product or service you need to sell to make a profit. In this lesson, you'll learn what a break-even analysis is and how it is calculated.

Margin of Safety in Accounting: Definition & Formula

4. Margin of Safety in Accounting: Definition & Formula

In this lesson, we will explore margin of safety. We will define the term and apply it to some basic examples. Then, we'll calculate margin of safety before concluding with a summary and a quiz.

Computing the Sales Mix with Limited Resources

5. Computing the Sales Mix with Limited Resources

Businesses face limitations in producing their products or services. In this lesson, you'll learn how a business determines its optimal sales mix with limited resources.

Impact of Cost Structure on Net Income

6. Impact of Cost Structure on Net Income

Depending on how you decide to structure your costs, there could be an impact on net income. In this lesson, we see how to not only affect the net income with cost structure, but also how to track it.

Operating Leverage: Definition, Calculation & Examples

7. Operating Leverage: Definition, Calculation & Examples

Explore the definition and importance of operating leverage, and take a look at examples to assist you in the accounting process. When you are finished with the lesson, there is a quiz to test your knowledge.

Incremental Analysis: Definition & Examples

8. Incremental Analysis: Definition & Examples

Companies often have to make decisions based on vast amounts of data. Incremental analysis allows them to focus on the important information only. In this lesson, we'll learn how to use incremental analysis.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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