The CVP graph shows profit and loss at different rates of activity.

Name: The CVP graph shows profit and loss at different rates of activity.
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Question

Quizplus · Accepted Answer

The CVP graph, also known as the cost-volume-profit graph, displays the relationship between cost, volume or level of activity, and profit or loss. The graph shows the expected profit or loss at different levels of sales or production activity. Therefore, option A is correct.

The CVP Graph Shows Profit and Loss at Different Rates