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Investments glossary

Cost-Volume-Profit – CVP Analysis Definition


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The GOLD in Golden years was identified by the sight impaired. It is actually Rust!!

— Jenny Flowers Strother

Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit. The cost-volume-profit analysis, also commonly known as break-even analysis, looks to determine the break-even point for different sales volumes and cost structures, which can be useful for managers making short-term economic decisions.


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