Asked by Isabelle Manaytay on Apr 26, 2024
Verified
In a Cost-Volume-Profit graph (sometimes called a break-even chart), unit volume is represented on the horizontal (X) axis and dollars on the vertical (Y) axis.
Cost-Volume-Profit Graph
A visual representation that shows the relationship between a company's costs, its production volume, and the profits generated at different levels of output.
Unit Volume
The quantity of units produced or sold by a business, used as a measure of output or sales level.
- Decode the graphic illustration of cost-volume-profit analysis.
Verified Answer
ND
Naree DachruchaApr 29, 2024
Final Answer :
True
Explanation :
In a Cost-Volume-Profit graph, unit volume is represented on the horizontal (X) axis and dollars on the vertical (Y) axis. This is because the graph is used to analyze the relationship between volume of sales, revenue, and costs to determine the break-even point and potential profitability.
Learning Objectives
- Decode the graphic illustration of cost-volume-profit analysis.
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