- Course Code: UKVC19COS
- Location: Online
- Duration: 0.75 hours
- Cost: £49.00
- Qualification: All modern browsers and devices
- Course Access: Lifetime
- Exams Included: Yes
- Compatibility: All major devices and browsers
Costs, Volumes and Profits Certificate
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.
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:
- 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
Taking this course will help you:
Who can take the Costs, Volumes and Profits Certificate course?Anyone who has an interest in learning more about this subject matter is encouraged to take the course. There are no entry requirements to take the course.
What is the structure of the course?The course is broken down into 1 individual modules. Each module takes between 20 and 90 minutes on average to study. Although you are free to spend as much or as little time as you feel necessary on each module, simply log in and out of the course at your convenience.
Where / when can I study the course?You can study the course any time you like. Simply log in and out of the web based course as often as you require. The course is compatible with all computers, tablet devices and smart phones so you can even study while on the move!
Is there a test at the end of the course?Once you have completed all 1 modules there is a multiple choice test. The questions will be on a range of topics found within the 1 modules. The test, like the course, is online and can be taken a time and location of your choosing.
What is the pass mark for the final test?The pass mark for the test is 70%.
What happens if I fail the test?If you don’t pass the test first time you will get further opportunities to take the test again after extra study. There are no limits to the number of times you can take the test. All test retakes are included within the price of the course.
When will I receive my certificate?Once you have completed your test you can log in to your account and download/print your certificate any time you need it. If you would prefer us to post you a certificate to a UK address, there will be an admin charge of £10 (certificates sent internationally may cost more).
How can I pay?You can either use your Visa, MasterCard, American Express, Solo cards or PayPal account to pay for the online course. Our site uses the latest SSL encryption to ensure your safety. All payments are handled securely by PayPal.
How long after payment can I begin the course?You can begin the course immediately after your payment has been received. You will create your login details during the checkout process. We will also send you an email confirming your login details.
How long does it take to complete the Costs, Volumes and Profits Certificate course?We estimate that the course will take about 0.75 hours to complete in total, plus an additional 30 minutes for the end of course test.
How long is my certificate valid for?Once you have been awarded your certificate it is valid for life. The certificate does not expire or need renewing.