Which of the following expense types can be used in a CVP analysis? ____
A) mixed
B) variable
C) fixed
D) all of the above

Question

Quizplus · Accepted Answer

In a CVP analysis, all types of expenses (mixed, variable, and fixed) are considered as they each impact the company's break-even point and profit margins. Mixed expenses can be separated into their variable and fixed components to accurately calculate their effect on the company's profitability. Variable expenses increase or decrease with changes in sales volume, while fixed expenses remain the same regardless of sales volume. Therefore, including all types of expenses in a CVP analysis is necessary to make informed business decisions.

Which of the Following Expense Types Can Be Used in a CVP