Instructor for this course
more

In today’s fast paced innovation economy, getting costs right is not just an accounting exercise, it is critical to the survival of any business.  From large companies like Apple, to the smallest startup, these companies must completely understand their costs structure.

This course helps you understand how the different components of product costs work so that you can accurately and quickly predict costs across a whole spectrum of production volume possibilities.

Learning Objectives

  • Describe the basic cost/volume/profit equation and why it is essential to decision making in the innovation economy.
  • Define the concept of contribution margin, how to calculate contribution margin and how to use contribution margin for rapid decision making.
  • Be able to calculate the sales and unit volume to achieve breakeven or to achieve a certain target profit and its impact on decision making.
  • Appraise the assumptions and limitations behind CVP Analysis.
  • Establish how to determine a product’s margin of safety and what it means for decisions on product launch or termination. 

7 Reviews (25 ratings)Reviews

3
Member's Profile
It seemed that slides were not in order. For example, the review of the first question was not presented until the final section. Also, 120/240 equals 50% not 240/120, which equals 2, as shown on the slides.
4
Member's Profile
Good for basic refresher. The order of the lessons is a little odd (Target profit calcs should perhaps come after the break-even), but good examples.
5
Member's Profile
Very good overview of CVP with pretty good math examples.
5
Anonymous Author
Very useful knowledge and presented well
4
Anonymous Author
This was a good refresher course on CVP
3
Anonymous Author
Good presentation
5
Anonymous Author
Very good.

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
CVP Analysis and Breakeven
  14:07Strategy
  5:06Target Profit
  6:03Spreadsheet Example of CVP Analysis
  18:04Calculating Breakeven
Conclusion
  2:13Summary
Continuous Play
  51:21Using Cost Volume Profit Analysis to Drive Innovation and Results
SUPPORTING MATERIALS
  PDFSlides: Cost Volume Profit Analysis
  PDFCost Volume Profit Analysis Glossary Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM