Traditional Culture Encyclopedia - Traditional culture - What are the meanings of the points in a cost-volume-profit relationship diagram?
What are the meanings of the points in a cost-volume-profit relationship diagram?
Cost-volume relationship chart is the use of analytical geometry in the plane right-angle coordinate system on the establishment of a comprehensive reflection of the cost, business volume and profit and other factors between the dependence of the image. The cost-volume-profit relationship chart can not only reflect the total level of fixed costs, variable costs, sales volume, sales revenue and profit indicators, but also to a certain extent reflect the unit price, unit variable costs and unit contribution margin unit volume level; and to reveal the capital conservation point, profitability point, the level of the margin of safety volume and margin of safety indicators, depicting the relevant range, the shape and size of the loss area and the profit area.
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