Cost-volume-profit analysis is a precise tool for determining the profit consequences of future cost changes,price changes,and volume of activity changes.

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Quizplus · Accepted Answer

Cost-volume-profit analysis is an approximation tool that helps in understanding the relationship between costs, volume, and profit, but it relies on assumptions and simplifications, making it not entirely precise.

Cost-Volume-Profit Analysis Is a Precise Tool for Determining the Profit