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As an academic subject, Accounts is a tough one, but if you understand the concepts thoroughly, it is very interesting as well. To get an in-depth knowledge of any subject, there is the need of a subject expert, who can help you understand the key concepts of the subject and make it seem easier to grasp.
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What is Cost Planning?
Planning is an essential step in any project. Without proper planning, no project can be successfully completed. Cost Planning is very similar to Estimating, but there are slight differences as well. Estimating the total cost or budget of the project can be termed as Cost Planning. It is an essential part of the planning process and needs to be done by the project managers.
In a project’s life-cycle, there are various stages where expenses are incurred, and it is necessary to make an estimation of these expenses prior to the starting of the project. By reviewing the previous similar projects, a budget estimation can be made, and this can prove to be very useful in project planning.
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What is CVP?
Cost Volume Profit Analysis or CVP is a managerial tool. It helps the managers in making short-term economic decisions. It is a method of cost accounting, where all costs are fixed. CVP Analysis is calculated on the basis of fixed cost and variable cost of each unit. Every business runs on profit, but earning a profit is not enough, profit-maximization is also necessary.
In Profit Planning, CVP Analysis plays a vital role. It also helps in formulating strategies in sales planning and cost estimation. CVP Analysis shows the relationship among different variables like selling price, volume of sales, and taxes. Through CVP Analysis, the relationship between cost and volume and their effect on profit are ascertained. While setting up a new firm, CVP Analysis helps the entrepreneurs to forecast and estimate the profit that the new firm may generate.
Necessity of Cost Planning and CVP assignment help
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Most students find the concepts of cost estimation and cost planning similar, and often confuse them as the same thing, which they are not. At myhomeworkhelp.com, our experts help the students understand these concepts well. Thus, for the best Cost Planning and CVP assignment help, contact us today, and we will help you in the best way possible.
