CVP analysis is not important in
A) calculating depreciation expense.
B) setting selling prices.
C) determining the product mix.
D) utilizing production facilities.

Question

Quizplus · Accepted Answer

CVP analysis is primarily concerned with analyzing the relationships between sales levels, costs, and profits. While depreciation expense is a significant cost for many companies, it is not directly related to sales levels and therefore does not fall within the scope of CVP analysis.

CVP Analysis Is Not Important in