Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize profits.
A)Cost-volume-profit analysis
B)Marginal revenue costs analysis
C)Break even analysis
D)Cash flow analysis

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is a managerial accounting technique that analyzes the relationship between fixed and variable costs, selling price, and sales volume to determine the break-even point and the number of units that need to be sold to maximize profits. It takes into account the contribution margin (selling price minus variable costs) and fixed costs to determine the level of sales needed to cover all costs and reach the desired profit level.

Identify the Managerial Accounting Technique Which Looks at the Fixed