Which of the following is an uncertainty faced by managers in CVP analysis?
I. Unexpected changes in costs
II. How quickly demand for new products will change
III. The amount of budgeted advertising costs
A) III only
B) I and II only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

I. Unexpected changes in costs can cause variations in the breakeven point and affect the overall profitability of the organization. 
II. Demand for new products can affect sales revenue and thus affect the breakeven point and profitability. 
III. The amount of budgeted advertising costs is a known factor and not necessarily an uncertainty in CVP analysis.

Which of the Following Is an Uncertainty Faced by Managers