In the study of accounting and financial management CVP analysis is very important in measuring the relationship among the variables with profit

Profit is the main objective of any business organization. To earn a lot of money is the objective of a business. Revenue earning is related with profit. How much the company will make profit depends on some variables. These variables are cost, volume of output, price of the product, price index, etc. All of these variables also are interrelated with the externally active force. In the study of accounting and financial management to make these relationship is very important. An accountant or other operation manager is responsible to search and establishe thes relationships. These wuestion is very common for all of the business ownerd to predict an effective answer to gain large revenue. These are just like what will be the profit from the business organization. What volume should be produce? What will be the cost of the business operation. CVP analysis search these answers. CVP analysis can easily and can say Cost Volume Profit analysis. CVP analysis explain the effects of cost and output of the production on the profit of the business.