The key to applying CVP analysis in non-profit and service organizations is to measure their output.

Question

Quizplus · Accepted Answer

Non-profit and service organizations may not sell products, but they still have measurable outputs such as the number of clients served or the amount of services provided. CVP analysis can help these organizations determine the cost of each unit of output and make decisions about pricing, funding, and resource allocation.

The Key to Applying CVP Analysis in Non-Profit and Service