What assumptions and limitations should managers consider when using CVP analysis?

Cost-Volume-Profit Analysis

1.What is cost-volume-profit (CVP) analysis, and how is it used for decision making?

Q2: How are CVP calculations performed for a single product?

Q3: How are CVP calculations performed for multiple products?

Q4: What assumptions and limitations should managers consider when using CVP analysis?

Q5: How are the margin of safety and operating leverage used to assess operational risk?