CVP analysis does not consider
A) level of activity.
B) fixed cost per unit.
C) variable cost per unit.
D) sales mix.

Question

Quizplus · Accepted Answer

Fixed cost per unit is not considered in CVP (Cost-Volume-Profit) analysis because fixed costs remain constant in total regardless of the level of activity within the relevant range. CVP focuses on how revenues, expenses, and profits change with changes in volume, not on per unit costs of fixed expenses.

CVP Analysis Does Not Consider