Managers should consider which of the following in CVP analysis:
I Relevant Range
II Cost Behaviour
III Sales Mix
A) I and III only .
B) I and III only.
C) I and II only.
D) I, II, and III.

Question

Managers should consider which of the following in CVP analysis: 
I Relevant Range
II Cost Behaviour
III Sales Mix
A) I and III only .
B) I and III only.
C) I and II only.
D) I, II, and III.

Quizplus · Accepted Answer

In CVP (Cost-Volume-Profit) analysis, managers should consider the Relevant Range (the range of activity within which assumptions about variable and fixed cost behavior are valid), Cost Behavior (how costs change in relation to changes in volume of activity), and Sales Mix (the proportion of different products or services that make up the total sales of a company), as all these factors impact the analysis and decision-making process.

Managers Should Consider Which of the Following in CVP Analysis