CVP Analysis MBA Project

I am doing MAB degree from Mumbai University and came to know about the term Cost-Volume-Profit (CVP) analysis. Will you tell me what CVP Analysis along with their advantage and disadvantage also provide me CVP Analysis MBA Project Report?

[Kiran Chandar]

Cost-Volume-Profit (CVP) analysis is a managerial accounting technique used to analyze how changes in cost and sales volume affect changes in a company's profit.

The technique is widely used in business and has many advantages.

Advantages of CVP:

Decision-Making

CVP analysis provides managers with the advantage of being able to answer specific pragmatic questions needed in business analysis.

Detail

Another major benefit of CVP analysis is that it provides a detailed snapshot of company activity. This includes everything from the costs needed to produce a product to the amount of the product produced.

Disadvantages of CVP:

Limitations

The CVP approach to analysis is beneficial, but it is limited in the amount of information it can provide in a multi-product operation.

Approximations

Even though CVP analysis is based on specific data and requires tremendous attention to detail, the best that it can do is provide approximate answers to questions, rather than ones that are exact.

Please find the below attached file for the CVP Analysis MBA Project sample report: