Uses of P/V Ratio

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Rakesh Sahu asked almost 4 years ago

    2       0 Answer Now Comment Report
2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 3 years ago

-The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitability. The Contribution is the extra amount of sales over variable cost. -It may be used for the calculation of the desired volume of output, profit or other essential facts -Comparisons can be made by calculating the P/V Ratio for each of the factors to be compared, viz. - Line of product, -Sales area, -Method of sales (e.g., sales through wholesalers or retailers),

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Data?1494421730 rohit awasthi answered almost 4 years ago

Dear Friend > Uses of P/V Ratio 1. To compute the variable costs for any volume of sales. 2. To measure the efficiency or to choose a most profitable line. The overall profitability of the firm can be improved by increasing the sales/output of a product giving a higher PV ratio. 3. To determine break-even point and the level of output required to earn a desired profit. 4. To decide more profitable sales-mix. Thanks

    1       0 Comment Report
Get Notifications
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.