COMPSCI 1BA3 Chapter Notes -Dialog Box, Income Statement
22 Jan 2013
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Document Summary
Comp sci session 10. 1 data tables and what-if. Cost-volume-profit (cvp) studies relationships expenses, sales, volume, and profitability. First component of cvp is cost or expense. There are 3 types of expenses: variable, fixed, mixed. Variable expenses change in respect to the amount of business a company does: expense such as, buying the product, making the product. Fixed expense that must be paid regardless of the number of sales: ex. Mixed expense is a mixture of variable and fixed expenses. Break-even point is the point where revenue equals expenses. Sales below the break-even point = lose of money, above the break-even point = increase in profit: cvp analysis calls this break-even analysis. Cost-volume-profit (cvp) chart is a chart that displays the point where the revenue and expenses meet. Performing a what-if analysis with goal seek (pg. What-if analysis lets you observe the impact of changing values in a worksheet.
