Cost-volume-profit analysis is used to predict future costs to be incurred, volumes of activity, sales to be made, and profit to be earned.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is a valuable tool that is used by businesses to determine the relationship between costs, sales volume, and profits. By using this analysis, businesses can predict future costs to be incurred as well as volumes of activity, sales to be made, and profits to be earned. Therefore, the statement is true.

Cost-Volume-Profit Analysis Is Used to Predict Future Costs to Be