Cost Volume Profit Analysis (CVP) – Managerial Accounting


Cost Volume Profit Analysis (CVP) – Managerial Accounting, Cost accounting-Cost Vile Profit Analysis (CVP) including contribution margin income statement & forecasting with CVP.

What you”ll learn:

  • Define key principles of managerial and cost accounting to solidify foundational knowledge.
  • Demonstrate construction and use of a Contribution Margin Income Statement.
  • Classify business costs into fixed, variable, and mixed categories.
  • Calculate the break-even point in units and revenue for effective planning.
  • Forecast future business performance using CVP analysis techniques.
  • Adapt CVP analysis to scenarios with multiple inventory products.
  • Explain operating leverage, compute it, and discuss its implications.
  • Evaluate assumptions underpinning CVP analysis and recognize its limitations.
  • Apply learned concepts to solve comprehensive Excel-based problems.
  • Assess the impact of changes in cost and volume on profit, using CVP analysis tools.
  • Formulate strategies to optimize profitability using the results of CVP analysis.
  • Identify the relevance and application of CVP analysis in various business contexts.
  • Distinguish between the high-low method and scatter diagram method for handling mixed costs.


Managerial and cost accounting topics of cost volume profit analysis (CVP).

We will review managerial accounting concepts and the difference between managerial accounting and cost accounting.

The course will start out introducing our primary CVP tool, a contribution margin income statement. The contribution margin income statement will give us an idea of where we are going as we then zoom into more detail going forward, focusing on the nuances of each step in the process.

We will discuss the concept of mixed costs, why they are a problem, and different methods for dealing with them including a high low method and scatter diagram method.

The course will explain the brea-keven point in units and revenue, one of the foundational concepts of cost volume profit analysis (CVP), and one many other concepts are built from.

We will discuss forecasting using cost volume profit analysis (CVP). Projections into the future are one of the significant benefits that CVP provides.

The course will cover techniques to apply CVP analysis when there are multiple inventory products.

We will also discuss the concept of operating leverage, how it is calculated, and why it is useful.

The course will talk about assumptions that cost volume profit analysis makes and limitations to CVP analysis.

We will also work a comprehensive problem using Excel and step by step instructional videos.

The course will have many Excel worksheets to help us review topics. Excel worksheets generally include three tabs. One tab will have the completed problem so we can see the result. Another tab will have a preformatted worksheet where we can fill in the problem. The last tab will have a blank worksheet where we can build our own tables if we choose.

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