The CVP analysis is generally made

The CVP analysis is generally made under certain limitations and with certain assumed conditions, some of which may not occur in practice. Following are the main limitations and assumptions in the cost-volume-profit analysis:
1. It is assumed that the production facilities anticipated for the purpose of cost-volume-profit analysis do not undergo any change. Such analysis gives misleading results if expansion or reduction of capacity takes place.

النتائج (الإنجليزية) 2:

The CVP analysis is generally made under certain limitations and with certain assumed conditions, some of which may not occur in practice. Are On the main Following limitations and assumptions in the cost-volume-profit analysis All :
1. It is assumed That the anticipated production facilities for the purpose of cost-volume-profit analysis All do not undergo any change. Such analysis gives misleading results if expansion or reduction of capacity takes place.