Research On The Extension And Application Of CVP Analysis Model

CVP analysis is an important tool for enterprise internal management, the analysis takes the cost behavior into the premise, and based on three basic assumptions. As the manufacturing environment changes, business cost structure changes, the conventional cost behavior based on single-action shows narrow-minded, and the basic assumptions also limits the practical application of CVP analysis. This thesis interprets cost behavior by multiple cost drivers, establishing the extended CVP analysis model, and breaks through the limitations of the original hypothesis, increasing the practical application value of the CVP analysis.In this thesis, literature research, comparative law and case studies are adopted to research the theory and practical application of the extended CVP analysis system.The results show that the expansion of CVP analysis can provide more accurate information for decision-making of the enterprise, and has a wider application value and practical meaning.