Which of the following techniques examine changes in profits in response to changes in volume, costs, and prices?
A) Activity-based costing
B) Financial statement analysis
C) Cost-volume-profit analysis
D) Balanced scorecard

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis, also known as break-even analysis, is a technique that examines the impact of changes in volume, costs, and prices on profits. It helps businesses determine the required sales volume needed to cover all costs and make a profit. Activity-based costing is a technique that identifies overhead costs associated with each activity in a process. Financial statement analysis involves examining financial statements to evaluate a company's liquidity, profitability, and solvency. Balanced scorecard is a strategic management tool that measures an organization's performance against strategic goals. While all of these techniques are important, only Cost-volume-profit analysis directly examines changes in profits in response to changes in volume, costs, and prices.

Which of the Following Techniques Examine Changes in Profits in Response