In a CVP graph,the area between the total cost line and the total fixed cost line yields the
A)fixed costs per unit.
B)total variable costs.
C)profit.
D)contribution margin.

Question

Quizplus · Accepted Answer

The area between the total cost line and the total fixed cost line on a Cost-Volume-Profit (CVP) graph represents the total variable costs. This area increases with the level of production or sales volume, reflecting the behavior of variable costs.

In a CVP Graph,the Area Between the Total Cost Line