THE COST-VOLUME-PROFIT MODEL: ITS TOOLS AND APPLICATION

Abstract

“Against improvisation, planning,” reads the sentence that becomes more valid every day; and it cannot be any other way given the advances in technology and globalization. We must all plan regardless of the area in which we develop; However, for companies, this becomes vital. Therefore, with this contribution we intend to strengthen the conviction that micro, small, medium or large companies must use the tools that exist for planning.

This article presents a review of the cost-volume-profit model, emphasizing the tools necessary for its use, such as: the break-even point and the sales budget; concluding with an example of modification in the variables.