Asked by Santiago Quirós on Jun 16, 2024
Verified
Cost-volume-profit analysis can be used to compute expected income from predicted sales and cost levels.
Cost-Volume-Profit Analysis
A management accounting method used to analyze how changes in costs and sales volume affect a company's profit.
Expected Income
This is the amount of revenue or profit an individual or business anticipates earning over a specific period, often used for budgeting and planning purposes.
- Implement cost-volume-profit analysis to project future expenditures, sales quantities, and profitability in multiple scenarios.
Verified Answer
NG
Nishad GeorgeJun 17, 2024
Final Answer :
True
Explanation :
Cost-volume-profit analysis is a useful tool for calculating expected income by examining how changes in sales volume, costs, and prices will impact profit.
Learning Objectives
- Implement cost-volume-profit analysis to project future expenditures, sales quantities, and profitability in multiple scenarios.
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