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which of the following is an assumption used in cost-volume-profit analysis? select one: a. all costs are classified as fixed or variable. b. the total cost function is linear. c. the total revenue function is linear. d. all of the above.

Respuesta :

All costs are classified as fixed or variable , all costs are classified as fixed or variable, all costs are classified as fixed or variable . D all of the above.

What does cost-volume-profit analysis mean?

  • Finding out how changes in variable and fixed expenses impact a company's profit can be done using a cost-volume-profit (CVP) analysis.
  • Companies can utilize CVP to determine the number of units they must sell to achieve break-even (cover all costs) or a specific minimum profit margin.

What three components make up a CVP analysis?

Identifying the impact of changes in variable and fixed expenses on profitability is the goal of a CVP analysis.

Cost, sales volume, and price are the three key factors.

Learn more about cost-volume-profit analysis

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