Lecture on Cost Volume Profit Relationships

This Lecture paper is prepare for Cost Volume Profit Relationships. Cost volume profit (CVP) analysis is used to determine how changes in costs and volume affect a company’s operating income and net income. In performing this analysis, there are several assumptions made, including : Sales price per unit is constant,Variable costs per unit are constant, Total fixed costs are constant, Everything produced is sold, Costs are only affected because activity changes etc.