CVP analysis can be used to predict future costs and profitability by the several different functions it presents regarding cost volume profit. For example, looking into sales volumes, costs, and profits. This information is sought to gauge profitability within target profiles, break-even points, and sales volume. My current place of employment is working with individuals who have developmental disabilities in a group home setting. I am a Regional Director who oversees a region of six homes. As a Director one of the functions of my Job is to look into the budgets and calculate/predict if our homes will be profitable or lose money. In working for a nonprofit organization usually the goal is the break even or have some profit. No business wants to lose money by having too much overhead or expenses. CVP can be used to identify future costs, profits, or losses. Using CVP the company can analyze financial patterns. Overall, gathering information to explore and use insight for the objective to ensure profits is a foundational key to CVP and utilizing this information to impact the company's production.

  

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