Using Cost –Volume – Profit Method in Analysing the Relationship between Profitability Threshold – Current Operating Activity Risks of the Entity

Nicoleta Niculescu and Vasile Rusu

Abstract:

The most important use of cost-volume-profit analysis stems from the relationship between the profitability threshold and the risks accompanying the current activity: the operating risk (economic), the financial risk (equity) and the total or global risk (economic and financial).