COST–VOLUME–PROFIT ANALYSIS- case2

Module 2 - Background

COST-VOLUME-PROFIT ANALYSIS

Modular Learning Objectives

Keep the following objectives in mind as you work through the material in this module:

· Define of cost-volume-profit.

· Understand the relationship between variable costing and cost-volume-profit analysis.

· Apply and analyze break-even.

· Compute break-even in units.

· Compute break-even in sales.

· Analyze target profit.

Required Reading

Variable and fixed costs were introduced in the prior module. Now it is time to examine cost behavior in more detail by familiarizing yourself with the following while keeping the above six objectives in mind. Click on the three arrows to explore each topic in more detail.