Managers can use cost-volume-profit analysis to evaluate changes in cost structure.CVP analysis is useful in evaluating changes in price and cost structure.

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Cost-volume-profit analysis helps managers understand how changes in cost structure, including changes in pricing strategy, can impact their overall profitability. By analyzing the relationship between fixed costs, variable costs, unit prices, and unit sales volume, managers can identify ways to improve profitability and make better strategic decisions.

Managers Can Use Cost-Volume-Profit Analysis to Evaluate Changes in Cost