paraphrase Cost-Volume-Profit (CVP) analysis can be used to predict future costs and profitability by using historical data. Many companies use CVP to find breakeven points which help better predict where profit margins begin, which help predict future costs. CVP allows for a company to look at cost, profit and total revenue, at different times. Profit is the result of interaction between different factors - cost volume and sales price. The effectiveness of a manager depends on his ability to make accurate predictions about future profits