Cost-volume-profit analysis

Cost-volume-profit analysis (CVP analysis) is examines the behavior of total revenues, total costs, and operating income as changes occur in the units sold, the selling price, the variable cost per unit, or the fixed costs of a product.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Cost-volume-profit analysis (CVP analysis). Examines the behavior of total revenues, total costs, and operating income as changes occur in the units sold, the selling price, the variable cost per unit, or the fixed costs of a product.

According to Managerial Accounting by Braun, Tietz (5th edition),

Cost-volume-profit analysis (CVP analysis). Expresses the relationships among costs, volume, and profit or loss.