Asked by Melissa Johnson on May 09, 2024
Verified
A manufacturing firm would most likely use a cost-volume-profit analysis to calculate how many products must be sold at a certain price in order for revenues to equal total costs.
Cost-Volume-Profit Analysis
An accounting methodology used to estimate the impact of varying levels of costs and volume on operational profit.
Manufacturing Firm
A business that produces goods in large quantities using raw materials, components or parts, and machinery, often within a factory setting.
- Understand the application of cost-volume-profit analysis in pricing decisions.
Verified Answer
JE
Jacqueria EverettMay 11, 2024
Final Answer :
True
Explanation :
This statement accurately describes the primary purpose and application of cost-volume-profit analysis in a manufacturing setting.
Learning Objectives
- Understand the application of cost-volume-profit analysis in pricing decisions.
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