CVP analysis helps managers prepare for and respond to economic changes, such as increasing costs and pressure to drop sales price.

Question

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CVP analysis (Cost-Volume-Profit analysis) helps managers understand the relationship between sales volume, costs, and profits. By understanding this relationship, managers can make informed decisions about pricing, cost-cutting, and product mix to respond to economic changes such as increasing costs and pressure to drop sales prices.

CVP Analysis Helps Managers Prepare for and Respond to Economic