Which graph depicts the relationships among total variable costs,total fixed costs,number of units,and operating income?
A)cost graph
B)volume graph
C)cost-volume-profit graph
D)break-even graph

Question

Quizplus · Accepted Answer

The cost-volume-profit (CVP) graph depicts the relationships among total variable costs, total fixed costs, number of units, and operating income. It shows the break-even point where the total revenue equals the total cost, as well as the profit and loss zones. The volume graph only shows the relationship between the number of units sold and the total revenue, while the cost graph only shows the relationship between the total cost and the level of output. The break-even graph is a version of the CVP graph that focuses only on the break-even point. Therefore, the best choice is CVP graph or cost-volume-profit graph.

Which Graph Depicts the Relationships Among Total Variable Costs,total Fixed