The benefits of increased accuracy of using a computer model in CVP analysis always exceed the costs.

Question

Quizplus · Accepted Answer

While computer models can significantly enhance the accuracy of Cost-Volume-Profit (CVP) analysis, the benefits do not always exceed the costs. The complexity of the model, the cost of software, and the need for specialized knowledge to interpret the results can sometimes outweigh the advantages of increased accuracy.

The Benefits of Increased Accuracy of Using a Computer Model