CVP Analysis课件.pptVIP

Cost-Volume-Profit Analysis;Explain cost-volume-profit (CVP) analysis, the CVP model, and the strategic role of CVP analysis Apply CVP analysis for breakeven planning Apply CVP analysis for profit planning Apply CVP analysis using activity-based costing (ABC);Employ sensitivity analysis to more effectively use CVP Adapt CVP analysis for multiple products Apply CVP analysis in not-for-profit organizations Identify the assumptions and limitations of CVP analysis;CVP analysis is a method for analyzing how operating decisions and marketing decisions affect profit CVP relies on an understanding of the relationship between variable costs, fixed costs, unit selling price, and output level (volume) ; CVP analysis can be used in: Setting prices for products and services Determining whether to introduce a new product or service Replacing a piece of equipment Determining breakeven point Making “Make-or-buy” (i.e., sourcing) decisions Determining the best product mix Performing strategic “what-if” (sensitivity) analysis;The CVP model is as follows: ;CVP Analysis (continued); Three additional concepts regarding the CVP model: Contribution margin: Unit contribution margin (cm) = Unit sales price (p) – Unit variable cost (v) Unit contribution margin (cm) = the increase in operating profit for a unit increase in sales = (p – v) Total contribution margin (CM) = Unit contribution margin (cm) x Units sold (Q); Contribution margin ratio = Unit contribution margin (cm)/unit sales price (p) = (p – v)/p = cm/p The contribution income statement: A useful way to show information developed in CVP analysis Classifies costs based on cost behavior (fixed versus variable) rather than cost type (product versus period) Provides an easy and accurate prediction of the effect of a change in sales on profits; CVP analysis can help a firm choose its strategic position and execute its strategy by providing an understanding of how changes in sales volume affect costs and profits Th