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Costs, Volumes and Profits Certificate

Be-a.co.uk

Summary

Price
£12 inc VAT
Study method
Online
Duration
1 hour · Self-paced
Access to content
Lifetime access
Qualification
No formal qualification
CPD
1 CPD hours / points
CPD What's this?
Additional info
  • Exam(s) / assessment(s) is included in price
  • Tutor is available to students

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Overview

Costs, Volumes and Profits Course

The difference between business revenue and costs of operation make up business profits. Sales volumes and the cost of products or services can impact the potential of a business to generate profits. This relationship is explained through cost-volume-profit analysis.

The difference between sales and variable costs or the cost of goods and/or services sold makes up profits. After deducting fixed costs from the gross profit, you are left with income or the net profit. Fixed costs range from rent and interest to insurance and labour costs. They are indirectly related to production of goods and services. Higher costs lead to lower profits and vice versa. Increasing revenue or lowering costs can increase profits. Improving the efficiency of business operations, reducing the cost of material and cutting on labour can reduce costs. The cuts on costs should not cause a drop in business revenue to increase profits. If the sales volumes are higher than variable costs, more profits can be generated. Constant sales volume and revenue with reduced costs can increase profits.

This course explains the relationship between costs, volumes and profits through cost-volume-profit analysis. We show how changes in prices, margins and unit volumes of products or services can affect a company’s ability to generate profits. Cost-volume-profit or CVP analysis is a critical tool for financial analysis that helps businesses determine their ability to become profitable.

CPD

1 CPD hours / points
Accredited by The CPD Certification Service

Description

You Will Learn:

  • The definition of the terms: costs, volumes and profits
  • The relationship between costs, volumes and profits
  • How to calculate cost-volume-profit or CVP analysis
  • The assumptions made during CVP analysis
  • How to calculate contribution margin and contribution margin ratio
  • Pound and unit break-even points
  • How to create a contribution margin income statement
  • The benefits of CVP analysis

Benefits of the Course:

  • Taking this course will help you:
  • Know the relationship between cost, volume and profits
  • Know how to calculate CVP analysis
  • Know how to use analysis results to increase business profits
  • Know the importance of the relationship of cost, volume and profits in business operations
  • Know the various benefits of CVP analysis in business
  • Learn how to increase profits in your current or future business

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Legal information

This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.

FAQs

Study method describes the format in which the course will be delivered. At Reed Courses, courses are delivered in a number of ways, including online courses, where the course content can be accessed online remotely, and classroom courses, where courses are delivered in person at a classroom venue.

CPD stands for Continuing Professional Development. If you work in certain professions or for certain companies, your employer may require you to complete a number of CPD hours or points, per year. You can find a range of CPD courses on Reed Courses, many of which can be completed online.

A regulated qualification is delivered by a learning institution which is regulated by a government body. In England, the government body which regulates courses is Ofqual. Ofqual regulated qualifications sit on the Regulated Qualifications Framework (RQF), which can help students understand how different qualifications in different fields compare to each other. The framework also helps students to understand what qualifications they need to progress towards a higher learning goal, such as a university degree or equivalent higher education award.

An endorsed course is a skills based course which has been checked over and approved by an independent awarding body. Endorsed courses are not regulated so do not result in a qualification - however, the student can usually purchase a certificate showing the awarding body's logo if they wish. Certain awarding bodies - such as Quality Licence Scheme and TQUK - have developed endorsement schemes as a way to help students select the best skills based courses for them.
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