Definition
Cost-volume-profit (CVP) analysis is the financial analysis examining how costs, volume, and profits are related. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Cost-volume-profit (CVP) analysis?” The useful answer is concrete: financial analysis examining how costs, volume, and profits are related. A slide title is not an answer.
Common mistake
Using Cost-volume-profit (CVP) analysis as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Cost of goods sold (COGS)
Direct costs associated with producing goods sold by a company.
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Cost-benefit analysis
Systematic approach to evaluating the costs and benefits of a decision.
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Cost-plus pricing
Pricing strategy that adds a markup to the cost of producing a product.
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Corporate strategy
Long-term plan for achieving competitive advantage and business objectives.
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