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Which of the Following Is Characteristic of the Profit-Volume Graph

Question 73

Multiple Choice

Which of the following is characteristic of the profit-volume graph?


A) It is difficult to interpret.
B) It fails to reveal how costs change as sales volume changes.
C) It can be plotted only if the break-even point is known.
D) It can be plotted only if fixed costs are known.

Correct Answer:

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