00:01
Cost volume profit cvp analysis is a method of cost accounting that looks at the impact that varying levels of cost and volume have on operating profit.
00:10
The cost volume profit analysis makes several assumptions.
00:13
What are at least four things? and explain that.
00:17
So the reliability of cbp analysis lies in the assumptions that it makes.
00:22
And these assumptions include, so we're looking at the assumptions of cvp analysis, and the assumptions include sales, price and the fixed and variable cost per unit are constant.
00:46
So sales price is constant, fixed costs per unit are constant, variable costs per unit are constant.
01:21
All units produced are also assumed to be sold, and it also assumes that all changes in expenses occur because of changes in activity levels.
02:08
So really it's about holding a bunch of things constant, right? i mean, that's what we're we're saying here.
02:14
We're keeping the sales price constant...