Cost-volume-profit as a management tool in a service company

Abstract

This article highlights the application of a model of cost-volume-profit, in a company providing a mix of services, using Microsoft Excel spreadsheet. From a practical example, it is shown how to apply theoretical concepts in monitoring the operational performance of an entity whether it be commercial, industrial or service company, small or large. To this end, we developed operating simulator model, in order to allow the manager make, so simple and practical, developing a internal planning to control their processes. It should be noted that despite the existence of more sophisticated software in the market, cost versus benefits relationship for small and medium businesses, is a limiting factor to be considered.