Cost-volume-profit analysis is a predictive tool for identifying the impact of future cost changes,price changes,and volume of activity changes.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is used to determine the impact of changes in costs, prices, and volume of activity on a company's profits in the future. It helps in predicting the effects of changes in these factors on the company's operations and enables decision-making for improving profits.

Cost-Volume-Profit Analysis Is a Predictive Tool for Identifying the Impact