The CEO of the company comes to you, the controller and asks the following-

"I've heard of a cost-volume-profit graph and it is said that it is frequently used in business meetings because it

presents a picture of cost relationships within a company."

I don't understand what benefit it can provide to our car manufacturing company. Can you describe the type of

information and data that you would need in order to prepare a CVP graph. And once it is created, can you explain

what are the major points that could be made from the graph that would be of interest to management? I don't

quite understand the benefits of it."