ECONOMICS

Detailed explanation-1: -Cost-volume-profit analysis is a precise tool for perfectly predicting the profit consequences of cost changes, price changes, and volume changes. Least-squares regression is a statistical method for deriving an estimated line of cost behavior.

Detailed explanation-2: -Cost Volume Profit (CVP) Analysis, also known as break-even analysis, is a financial planning tool that leaders use when determining short-term strategies for their business. This conveys to business decision-makers the effects of changes in selling price, costs, and volume on profits (in the short term).

Detailed explanation-3: -Which tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs? CVP analysis allows companies to easily identify the change in profit due to changes in .

Detailed explanation-4: -cost-volume-profit (CVP) analysis, helps managers predict how changes in costs and sales levels affect profit. In its basic form, CVP analysis involves computing the sales level at which a company neither earns an income nor incurs a loss, called the break-even point.