To which function of management is CVP analysis most applicable?
A)directing
B)controlling
C)planning
D)organizing

Question

Quizplus · Accepted Answer

CVP analysis (Cost-Volume-Profit analysis) is most applicable to the planning function of management. It helps in determining the breakeven point and analyzing the impact of changes in sales volume, prices, and costs on the profits of the business. It helps in making decisions related to pricing strategies, sales mix, and cost control measures, which are crucial for the planning process.

To Which Function of Management Is CVP Analysis Most Applicable