CVP Analysis

The objective of a business is to earn and maximize profits. Profit is a relationship between sales and cost which can be mathematically expressed as below: Profit = Selling Price x Quantity Sold – Cost Therefore the key factors that affect the profit of a business are a) Selling price of the products b) Volume […]

Decision Making

Decision making is a key function of managers which involves choosing between alternatives. There are various types of decisions faced by managers. Below are a few examples a) Make or buy a product b) Accept or reject an order c) Shutdown or continue operations of a plant d) Introduce a new product or not   […]