A CVP graph presents data on:
A) Profit and loss on a per unit basis.
B) Profit, loss, and break-even on a total dollar basis.
C) Profit, loss, and break-even on a per unit basis.
D) Only profit and loss on a total basis.
E) Profit and loss on a budget and actual basis.

Question

Quizplus · Accepted Answer

A Cost-Volume-Profit (CVP) graph shows the relationship between total revenues, total costs, and profit or loss at various levels of activity. It visually represents the break-even point where total revenues equal total costs, as well as areas of profit and loss on a total dollar basis.

A CVP Graph Presents Data On