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20 March, 10:58

To which function of management is cvp analysis most applicable?

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  1. 20 March, 11:07
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    Planning function.

    Management uses the CVP analysis to determine how changes in costs and volumes affect the company's profitability. They need to perform this analysis in planning their production schedule and levels to optimize value for the company. The planning function will perform this CVP analysis to inform production managers and other executives about how the product costs and volumes affect the levels of net operating income.
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