While doing cost-volume-profit analysis,a company should separate costs into fixed and variable components.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is based on the separation of costs into fixed and variable components, so that the behavior of the costs can be analyzed and the breakeven point can be calculated. Fixed costs remain the same regardless of changes in production or sales volume, while variable costs fluctuate with changes in volume.

While Doing Cost-Volume-Profit Analysis,a Company Should Separate Costs into Fixed