An entrepreneur while expanding his business must carefully plan with regards to his profit and expenses. For ensuring a good profit and his potential as such gets affected by the sales volume and the rate of expenditure. He must keep on constantly evaluate his proficiency in profit generation by analysis cost-volume-profit. To ascertain the ways of saving himself from the losses, he must consider the continue his study of the certain change taking place in terms of prices, investment and other factor to ensure the achievement of target profit.