Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize gains.
A) Cost-volume-profit analysis
B) Marginal revenue costs analysis
C) Break even analysis
D) Cash flow analysis

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is a managerial accounting technique used to determine the number of unit sales needed to break even or achieve a certain level of profit. It takes into account fixed costs, variable costs, selling price, and the desired profit margin to calculate the sales volume necessary for profitability. Marginal revenue costs analysis and cash flow analysis are different techniques used in managerial accounting, while break-even analysis is a part of cost-volume-profit analysis.

Identify the Managerial Accounting Technique Which Looks at the Fixed