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Courses/Finance/Budgeting & Financial Forecasting

Cost-Volume-Profit (CVP) and Break-Even Analysis

Understand cost structures, profit drivers, and financial decision-making.

Created byRob Stephensworkspace_premium
BeginnerUpdated Jan 11, 2025
Cost-Volume-Profit (CVP) and Break-Even Analysis

What You'll Learn

check_circleRecall the CVP and break-even formulas.
check_circleIdentify how to calculate the break-even point for multiple products.
check_circleRecognize how costs and profits change across the relevant range of analysis.
check_circleLeverage Excel tools to model CVP scenarios and optimize financial decisions.

About This Course

Cost-volume-profit (CVP) and break-even analysis are two related ways to quickly answer some key business questions that include:

  • How much will our profits go up if sales volume goes up by 100 units?
  • What do my sales need to reach for my new company to become profitable?
  • How much will profits decrease if we don't sell the budgeted number of units?

CVP and break-even analysis are incredibly useful tools that finance professionals use throughout their careers. The formula is simple but powerful. The CVP formula is the basic equation that determines almost every line of the income statement. It's the formula that drives projections, forecasts, and budgets. The formula can be used for a wide range of analyses that answer key business questions.

The course begins with a quick overview of how CVP analysis is used to calculate profitability and how break-even analysis can help you find a target sales volume. We also explore some key questions it can answer. The rest of this course dives deeper into these concepts. We'll look at the CVP and break-even formulas in more detail and how to use them. I'll show how they can help inform business decisions.

This course provides the basics for those new to CVP while providing insights to those with experience with CVP and break-even analysis.

Your Instructor

Rob Stephens
Rob Stephens

Founder of CFO Perspective

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star5,040 reviews

Rob Stephens is the Founder of CFO Perspective, which provides continuing education courses for CPAs and financial management courses for business advisors and staff. He has been quoted in Forbes, U.S. News and World Report, Bloomberg Businessweek, and many other news sources. He is also the author of Key Performance Indicators and KPI Dashboards. Rob has a 30-year career that includes serving as a CFO, Director of Operations, and SVP of Finance. Rob is an adjunct instructor for the MBA program at Gonzaga University. Rob holds a Masters of Science in Personal Financial Planning and a Graduate Certificate in Financial Therapy from Kansas State University. He received a B.A. in Business Administration from the University of Washington.

Credit Information

What Students Are Saying

5.0
Student's Choice
85 reviews

Frequently Asked Questions

We are a registered provider with 300+ associations and regulatory bodies worldwide. We operate across 27 global markets including Canada, the US, Australia, and the UK. Every course page clearly displays its specific accreditations. Upon completion, you receive a professional certificate that can be validated online. Our certificates include all necessary accreditation details, credit hours, and completion dates, and are formatted specifically to meet the submission requirements of most global regulatory bodies.

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