November 2023
Beginner
640 pages
16h 20m
English
Content preview from QuickBooks 2024 All-in-One For Dummies
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Chapter 1
Profit-Volume-Cost Analysis
IN THIS CHAPTER
Understanding how profit-volume-cost analysis works
Computing break-even points
Performing profit-volume-cost analysis with real QuickBooks data
Dealing with some minor conundrums
Working with the Profit-Volume-Cost Analysis workbook
Profit-volume-cost analysis is a powerful tool that estimates how a business’s profits change as its sales volumes change, as well as break-even points. (A break-even point is the sales revenue level that produces zero profits.)
Profit-volume-cost analysis often produces surprising results. Typically, the analysis shows that small changes in a business’s sales volume produce big changes in profits.
Hotels and airlines are types of businesses that often see surprising fluctuations in their profits based on relatively modest changes in their sales revenue. Indeed, now that you know this, you’ll probably ...