“Cost volume profit analysis and break even point analysis are s

Question

“Cost volume profit analysis and break even point analysis are same”. Comment.

Division
	A	B	C
Contribution (Rs.) Investment (Rs.) Sales (Rs.)	50,000	50,000	50,000
	4,00,000	5,00,000	6,00,000
	24,00,000	20,00,000	16,00,000
No. of employees	22,500	12,000	10,500

You are required to evaluate the performance using Rate of Return on Investment (ROI) and Residual Income (RI) criteria.

15 Apr 2024

Answer :

Word Count : 383

Cost-volume-profit (CVP) analysis and break-even point analysis are related but not the same. CVP analysis is a broader concept that includes break-even analysis as one of its components. Here's a brief explanation:

1. Cost-Volume-Profit (CVP) Analysis:
CVP analysis is a management accounting technique that examines the relationship between costs, sales volume, and profits. It helps managers understand how changes in costs, _______ _____ ______ ______ __________ ______ ________ ___ ___ __________ _________.
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