8.16: Introduction to Cost-Volume-Profit Elements
What you’ll learn to do: Describe the key elements of cost-volume-profit analysis
Determining pricing as it relates to the costs involved to manufacture a product or provide a service are crucial to the profitability of a company. As a manager, you may be tasked with pricing products or managing the many costs involved in the production process or service delivery.
Learning these skills will help you to improve the overall functioning of the company and your skills as a manager. Whether you are involved directly with preparing this type of analysis or not, it is important to understand the concepts to be an effective manager.