 In this presentation, we will discuss Cost Volume Profit Analysis or CVP Analysis. First question we're going to have is, why use Cost Volume Profit Analysis? What is Cost Volume Profit Analysis CVP Analysis? First we want to remember that this is a managerial accounting topic, so when thinking about financial accounting, we typically will not hear the term CVP, Cost Volume Profit Analysis, we're not applying rules such as generally accepted accounting principles here and therefore we're not required in any way to have a Cost Volume Profit Analysis CVP Analysis. Why then would we do it? It's for decision-making processes, it's for internal processes, it's for managerial accounting. One of the major benefits that a Cost Volume Profit Analysis will provide are planning tools. When we break things up into a Cost Volume Profit, a CVP Analysis type of setup, we have a much easier setup.