Page 103 - MAC4861_2 Costing Class Slides Part 1
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TEST 3 - COSTING
Introduction
• In this learning unit, we will consider the use of the same
basic financial information for decision-making by means of
cost-volume-profit (CVP) analysis.
• CVP is especially valuable during planning and budgeting as
it gives a broad indication of expected outcomes at
different levels for different variables in the CVP model.
• The breakeven analysis and margin of safety are also very
useful tools in measuring the riskiness of various plans or
scenarios in the budget.
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