Assume that you are making a presentation to the marketing manager at your company. What do you think the marketing manager should know about CVP analysis?

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Assume that you are making a presentation to the marketing manager at your company. What do you think the marketing manager should know about CVP analysis?

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Answer:

CVP analysis stand for cost volume Profit analysis. Generally it is used to determine, how  the changes in costs and volume affect a company’s operating income and net income

Marketing Manager should know about CVP analysis

As it is used by the management for make better business decisions, the marketing manager should know about the breakeven point, that he can tweak spending and try to  increase sale efforts to increase profitability

As it is statistical models, so the decisions can be broken down into probabilities that it help  the marketing manager with the decision-making process.

Marketing manager should know , what the future will hold if variables are altered.For example we could say that if transportation expenses change and this variable costs can affect the bottom line

In short we could say that, if the managers are not  detail-oriented and precise with the data they record, there will be  inaccurate projections for CVP analysis

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