ACC 650 Topic 4 Discussion GCU
How can CVP Analysis be used to predict future costs and profitability? Describe how CVP analysis is used, or could be used, at your current place of employment. If you have not worked for a company that might use CVP Analysis, you may choose a well-known company a...
How can CVP Analysis be used to predict future costs and profitability? Describe how CVP analysis
is used, or could be used, at your current place of employment. If you have not worked for a
company that might use CVP Analysis, you may choose a well-known company and describe how
you envision that company using CVP Analysis. Try to discuss a concept associated with CVP not
already addressed by your classmates. Consider using an article to summarize or apply the CVP
concepts. To participate in follow-up discussion, choose one of the topics/concepts that a
classmate has posted and provide your own reaction to it, add to what they posted or provide a
professional disagreement to their posting.
Please include proper citations in your discussion post. Points will be deducted if proper citations
are not used.
CVP analysis can be used to predict future costs and profitability by using historical data. Many
companies use CVP to find breakeven points which help better predict where profit margins begin,
which help predict future costs. CVP allows for a company to look at cost, profit and total revenue, at
different times. Profit is the result of interaction between different factors - cost volume and sales price.
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