Discussion – How Cost-Volume-Profit Analysis

Prior to beginning work on this discussion, please read the article A Case Method Approach of Teaching How Cost-Volume-Profit Analysis is connected to the Flexible Budgeting Process and Variance Analysis (Links to an external site.). The authors, Machuga and Smith (2013), present in the article a multidisciplinary case-method approach to help students who want to start a successful business understand the steps necessary to achieve their desired profits using cost-volume-profit (CVP) analysis. The case-method emphasizes on the importance of CVP analysis and how it ties directly into the planning and control processes any management must take to start a potentially successful business.