Which graph depicts the relationships among total variable costs, total fixed costs, number of units, and operating income?
A) cost graph
B) volume graph
C) break-even graph
D) cost-volume-profit graph

Question

Quizplus · Accepted Answer

The cost-volume-profit graph depicts the relationships among total variable costs, total fixed costs, number of units, and operating income. It shows how changes in sales volume affect operating income by comparing total revenue to total costs (fixed and variable). This graph is commonly used by businesses to determine their break-even point and understand their profitability at different levels of output.

Which Graph Depicts the Relationships Among Total Variable Costs, Total