Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis?
A)the ability to conduct sensitivity analysis of cost or price changes
B)the identification of price and efficiency variances
C)how many units must be sold to break even
D)what is the impact on the break-even point of an increase or decrease in fixed costs

Question

Quizplus · Accepted Answer

Cost-Volume-Profit analysis is used for calculating and analyzing the relationship between costs, volume, and profits. It is mainly used for determining the break-even point, conducting sensitivity analysis of cost or price changes, and determining the impact on the break-even point of an increase or decrease in fixed costs. Price and efficiency variances are not the focus of CVP analysis.

Which of the Following Is NOT a Use of CVP