Explanation of terms in terms of cost benefit analysis? Explanation of terms in this quantitative an

The cost-benefit analysis method mainly includes cost-preservation analysis (which is a quantitative analysis method to study the relationship between cost-cost and profit when an enterprise happens to be in a state of cost-protection, which is the core content of cost-benefit analysis), margin of safety analysis, cost-to-profit analysis of various products, target profit analysis, profit sensitivity analysis, etc.

Profit analysis is the abbreviation of "cost-business volume-profit analysis". It is used to study the relationship between factors such as product quality, business volume (sales volume, service volume or output), unit variable cost, total fixed cost, and variety structure of products sold, so as to make decisions on product structure, product pricing, production strategy, and production equipment utilization.

The most familiar form of cost-profit analysis is profit-loss critical analysis or capital preservation analysis. Many people equate the two.

To be precise, the critical analysis of profit and loss is only one part of the overall cost-profit analysis. Obviously, the break-even critical analysis does not only focus on finding a critical point or break-even point, but also expects to obtain the best possible business results. This method of analysis can be used to optimize the profitability of the enterprise; How many products should be sold (or how many sales) should be made to reach the target profit; The impact of changes in variable costs, sales, etc. on profits, etc.

The meaning of the analysis of quantity and profit is to grasp the law of profit and loss changes by analyzing the relationship between production costs, sales profits and product quantities, and guide enterprises to choose a business plan that can produce the most products at the minimum cost and enable the enterprise to obtain the maximum profit.

The cost-benefit analysis is also commonly referred to as the profit and loss analysis. The break-even point of the organization can be calculated by using the volume-cost-benefit analysis method, which is also known as the break-even point, the critical point of profit and loss, the point of profit and loss, and the turning point of income. The principle of analysis is as follows:

When production increases, sales revenue increases proportionally, but the fixed cost does not increase, but the variable cost increases with the increase in production.

Weights and measures is also known as the break-even analysis or break-even analysis, which is a method that provides a basis for decision-making by examining the relationship between output (or sales volume), cost and profit, and the law of profit and loss changes.

The analysis of cost and profit includes the number of production and sales, sales**, variable costs and fixed costs.

The formula of the cost-benefit analysis method has the following formula:

1. The basic formula of the analysis of cost and profit is as follows: Operating profit (unit price, unit variable cost), business volume, fixed cost.

2. The break-even analysis of a single product usually adopts the following methods: formula method, business volume at break-even point fixed cost (unit price unit variable cost) sales at break-even point unit price business volume at break-even point or sales at break-even point fixed cost (1 variable cost ratio) or sales at break-even point fixed cost Marginal contribution rate.

3. Among them, "this" refers to costs, including fixed costs and variable costs; "Volume" refers to the volume of business, generally refers to the volume of sales; "Profit" generally refers to operating profit. The method of profit analysis usually includes break-even analysis, target profit analysis, sensitivity analysis, margin analysis, etc. <>

4. The characteristics of cost-benefit analysis are: the analysis and calculation must be based on many assumptions. The results of the analysis cannot be completely consistent with the actual situation, and there must be differences. It has great dynamics.

5. The role of the analysis of this quantity and profit includes: the sales volume of the publication, the target profit, the pricing and sales revenue of the publication are determined according to the target profit, and the assessment standard of the quota and the mu is formulated as the basis for business decision-making, balance control and input-output capacity analysis.

Quantity and profit analysis is also called cost and profit analysis, referred to as CVP analysis, cost and profit analysis, the full name is output cost and profit analysis, also known as capital protection analysis or break-even analysis, is through the analysis of the relationship between production costs, sales profits and product quantities, the old group grasps the law of profit and loss changes, and guides enterprises to choose a business plan that can produce the most products at the minimum cost and enable the enterprise to obtain the maximum profit.

The analysis of cost and profit, including the analysis of the critical point of profit and loss, the analysis of the change of various factors and the analysis of sensitivity. Introducing several concepts, contribution gross profit is also called marginal contribution, and marginal profit refers to the balance of net sales minus the variable cost of knowledge; Variable cost refers to the sum of variable manufacturing costs, variable selling expenses and variable administrative expenses; The gross profit of the unit contribution is estimated by the ratio of the gross profit contributed to the sales volume; The contribution gross profit ratio is equal to the gross profit per unit contribution divided by the selling price of the unit product.