A CVP graph shows how changes in the level of sales will affect profits.

Name: A CVP graph shows how changes in the level of sales will affect profits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A CVP (Cost-Volume-Profit) graph shows the relationship between sales revenue, costs, and profits over various levels of production and sales. It illustrates how changes in the volume of sales will impact the profitability of the business. Thus, the statement is true.

A CVP Graph Shows How Changes in the Level of Sales