Asked by Penny Huang on May 16, 2024
Verified
Cost-volume-profit analysis is used to predict future costs to be incurred,volumes of activity,sales to be made,and profit to be earned.
Cost-Volume-Profit Analysis
A financial analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.
Future Costs
Expected or projected expenses that will be incurred in the future.
- Apply cost-volume-profit analysis for predicting future costs, sales volumes, and profitability under different scenarios.
Verified Answer
AP
Andrea PardoMay 18, 2024
Final Answer :
True
Explanation :
Cost-volume-profit analysis is a tool used in financial management to predict future costs, volumes of activity, sales, and profits. It is used by businesses to plan their future production and sales strategies.
Learning Objectives
- Apply cost-volume-profit analysis for predicting future costs, sales volumes, and profitability under different scenarios.
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