Cost-volume-profit analysis is NOT useful in ________.
A) calculating operating expenses
B) setting selling prices
C) determining the appropriate sales mix
D) optimizing production facilities

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is not useful in calculating operating expenses. It is primarily used to determine the relationship between the cost of producing a product, the volume of production, and the profits that can be generated from that production. While operating expenses do play a role in determining the profitability of a product, they are not a direct factor in the cost-volume-profit relationship.

Cost-Volume-Profit Analysis Is NOT Useful in ________