Which of the following is necessary for an effective CVP?
A)It must be lower in cost than that offered by competitors.
B)It must offer a giveaway or something extra.
C)It must be measureable in monetary terms.
D)It must offer occasional discounts and rewards.

Question

Quizplus · Accepted Answer

Measurability in monetary terms is essential for a CVP, as it allows for the calculation of the contribution margin and break-even point. Lower cost, giveaways, occasional discounts, and rewards are all additional strategies that can complement an effective CVP but are not necessary for its success.

Which of the Following Is Necessary for an Effective CVP