Mathematical and Statistical approach for the Cost-Volume-Profit Analysis and its Limiting Assumptions

Authors

  • Rodrigo José Guerra Leone
  • George Sebastião Guerra Leone

Keywords:

Cost-Volume-Profit Analysis, Assumptions, Limitation, Mathematical Approach, Statistical Approach

Abstract

   The cost-volume-profit (CVP) analysis is a very useful managerial tool in the planning process of the companies. Despite of it, one must use it knowing about its limitations that distort the real world. In this way, CVP analysis is rather indicated for the strategic decisions of the company, since in the long term, these shortcomings “are diluted” and, therefore, seem less heavy. The goal of this work is to study, based on a descriptive and bibliographical research, the simplifying hypothesis of the CVP analysis, its particular restrictions related to the loss of realism and its mathematical and statistical implications, and present some of the methodologies used to minimize the limiting effects of these hypothesis

Published

2009-05-14

How to Cite

LEONE, R. J. G.; LEONE, G. S. G. Mathematical and Statistical approach for the Cost-Volume-Profit Analysis and its Limiting Assumptions. Contabilidade Vista & Revista, [S. l.], v. 19, n. 4, p. 129–150, 2009. Disponível em: https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/371. Acesso em: 22 nov. 2024.