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What is Cost Behavior and CVP Analysis Overview about?

1. Cost behavior refers to how costs change with business activity levels and depends on cost drivers and relevant range. 2. There are two main types of cost behavior: variable costs change in proportion to activity while fixed costs remain constant over the relevant range. 3. Cost-volume-profit (CVP) analysis examines how costs, sales volume, and prices impact profits and is used to evaluate decision alternatives.

Author

mesele

Language

EN