Applying CVP Analysis Method in Product Pricing

Analyzing the CVP (Cost – Volume – Profit) relationship is to consider the internal relationship of the factors selling price, output, variable costs, fixed costs and consider the influence of the above factors. to the profits of the business. The article introduces the method of analyzing the Cost - Volume - Profit relationship combined with the activity-based cost accounting method, thereby suggesting to administrators to apply this method to determine the break-even point in the business. The article has applied the theory of analyzing the Cost - Volume - Profit relationship and applying the determination of costs by activity to evaluate an order in the actual operations of the business.