substantive response to: The cost volume profit analysis, comprised of multiple equations with the purpose to analyze the break even point and identify where their contribution margin can be improved. In most cases it would be applied on a more frequent and relevant basis, as its important to have all figures into account. Currently what we do is measure profit, loss, as well as rebates associated with sales which often occur. What is constantly in mind is if rebates are worth the loss considering the increased traffic when applied, additionally we want to measure the amount of loss associated to see if there are any outliers or areas to improve. I dont do much but sales and keep track of my own revenues, losses, etc. however its still relevant for me to have a transparent understanding of the circulation of money. When developed a greater understanding of operations I have found it easier to notice inconsistencies or irregularities in accounting. CVP from a broad perspective measures and takes into account the day to day activities, transactions, revenues, etc. In every business there are different aspects to pay attention to such as margins, break-even, the economies of scale rate, but the whole goal is to more effectively measure and respond to your results. Only with the ability to clearly measure and reflect on operations can you efficiently improve.