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Peter Freeman, Adjunct Professor of Finance - Golden Gate University
CFO, Corporate Treasurer, and Professor. Over 35 years in financial management. Arranged financings with total value over $1B including private equity, angel investment, asset-backed and other structures.
This instructor has 2 courses »To Access This Course:
Using Price-Volume-Cost (PVC) & Breakeven Analysis, this course explains how to understand the results of changes in pricing, volumes, and costs on financial performance and profitability.
Cost-volume-profit (CVP) analysis helps managers understand the interrelationships among cost, volume, and profit by focusing their attention on the interactions among the prices of products, volume of activity, per unit variable costs, total fixed costs, and mix of products sold. It is a vital tool used in many business decisions such as:
- Deciding what products to manufacture or sell,
- What pricing policy to follow,
- What marketing strategy to employ, and
- What type of productive facilities to acquire.
Learning Objectives
- Explain how changes in activity affect contribution margin and net operating income
- Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume
- Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume
- Determine the level of sales needed to achieve a desired target profit
- Determine the break-even point
- Be able to apply PVC Analysis to a range of typical business situations
Last updated/reviewed: November 18, 2020
32 Reviews (89 ratings)Reviews
Tim Philips
(Controller at Self)
The trick is to know the per unit costs as exactly as this. Most financial people talk GAAP costs per unit and refrain from doing otherwise. All finance staffs for mfg companies should consider this training as mandatory
Anonymous
(General Accounting Manager)
I liked how to instructor presented the information, it was simple yet hit on all the points clearly and effectively. I really liked the sample worksheet that was provided. I believe it will be useful in the future
Ara Toroyan
(Director - Financial Planning & Proc.. at NCCI Holdings, Inc.)
It’s pretty basic for a management accounting class. Good review for those not typically doing this type of analysis. It was good that the instructor approached breakeven from two different approaches.
Roni Faxon
(Division Finance Manager at Intevac, Inc)
Would have liked seeing formulas as they might have been set up in an Excel worksheet for better understanding of values used instead of having the numbers embedded in the Excel workbook provided.
Alex Ristevski CTP, CRC
(VP, Portfolio Manager at SunTrust Bank)
Good foundational course in cost-volume-profit & breakeven analysis. Presenter was effective in providing definitions of keys terms, equations, and multiple examples to illustrate key topic points.
Anonymous
()
This course helped solidify the concept of CVP and Breakeven analysis. The tools provided were also helpful in understanding how changing the inputs impact the Net operating income.
Anonymous
(Independent Financial Consultant)
Great course. I loved the various examples used throughout the course. Peter did a great job explaining the interrelationships among cost, volume, and profit.
I think the material was good, but all of the presentation was fundamentally behind one single equation and possibly multiple representations of the same.
Anonymous
(Financial Services Professional)
A great revision of the important topic. Nicely presented and explained. I like the course. More practice questions would help better to understand.
Anonymous
(Sr Accountant)
Course is well presented and explained but may be too basic for anyone with a business degree or that has taken a cost accounting course.
Anonymous
(Controller)
This class explained clearly with many examples and different scenarios how to use and the benefits of Cost-Volume-Profit Analysis
Michael Izzo
(Sr Financial Reporting Analyst at Catholic Health Initiatives)
Very easy to understand and good use of the equation and formula method to compute target profit and break even analysis
Edward Thill
(Consultant at None)
A very basic review, just a single formula applied multiple ways. The presenter's cursor was rather distracting.
Anonymous
(Executive Vice President of Finance)
Missing one slide in presentation. Some of the calculations were not exactly like the presentation.
Very easy to follow. Excellent for Corporate Accounting and Finance or Consulting.
Cheryl Husmann
( at Smiling Aviation, Inc.)
This was a good reminder of how contribution margin and break-even point work.
Carlos Moreno
(Regional Risk Manager at VF Corporation)
Nice course, very clear for the first approach to CVP and Break-even analysis
Betty Glover
(Assistant Controller at Senior Flexonics)
Material slightly repetitious when trying to highlight the calculations.
Colin Phillips
(Looking for CFO position at Between jobs)
A very good introduction to Cost-Volume-Profit and Break-even analysis.
Very good course. Good examples which clearly explained the concepts.
Anonymous
(Accounts & Finance Executive)
Certainly an applaudable course allowing a quick review of the topic.
Douglas Ronald
(---- at ------------)
Very basic; good for beginners, as these are important concepts.
Prashant Shah
(Manager-FP&A at jda)
Nice Course. I recommend to take this course by every fresher.
Jean Hector
(Treasury Analyst at NCCI Holdings, Inc)
I like the fact that he had an Excel spreadsheet available.
Anonymous
()
Very detailed explanation of CVP analysis. Easy to follow.
Mark Brinkerhoff CPA, CGMA, ..
(VP Finance at Ultradent Products Inc.)
Good course. Maybe a little basic for experienced users.
Anonymous
(Assistant Accounting Manager)
Good course to review the basics.
Anonymous
(SVP, Finance)
Interesting and practical course
Anonymous
(Analyst)
Very good course.
Richard Dandan
(Senior Accounting Specialist at National Food Authority)
Nice course!
Anonymous
(Financial Analyst)
Good point
Anonymous
(Sr. Institutional Fixed Income Trader)
Thanks
Prerequisites
Course Complexity: Foundational
A general understanding of basic accounting methods. Knowledge of cost accounting will be helpful.
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 .
Rather basic course good for beginners, would like to see more application in excel and different variations - ie sales force contribution calculations, etc