Asked by Teresa Pardo Álvarez on Apr 30, 2024
Verified
Cost-volume-profit analysis can be presented in both equation form and graphic form.
Cost-volume-profit Analysis
An accounting technique used to determine how changes in costs, sales volume, and price affect a company's profit.
- Acquire knowledge on the core principles of cost-volume-profit (CVP) analysis.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
True
Explanation :
Cost-volume-profit (CVP) analysis can indeed be presented in both equation form, which uses a mathematical formula to calculate the relationships among cost, volume, and profit, and graphic form, where these relationships are illustrated on a graph, typically showing the break-even point and profit or loss at various sales levels.
Learning Objectives
- Acquire knowledge on the core principles of cost-volume-profit (CVP) analysis.