Asked by Michael Megler on May 25, 2024
Verified
The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed
A) contribution margin analysis
B) cost-volume-profit analysis
C) budgetary analysis
D) gross profit analysis
Cost-Volume-Profit Analysis
An accounting method used to estimate how changes in costs, sales volume, and price affect a company's profit.
- Utilize cost-volume-profit analysis in various business contexts.
Verified Answer
MS
Mohamed SaeedMay 31, 2024
Final Answer :
B
Explanation :
Cost-volume-profit analysis is a tool that helps businesses understand their financial performance by examining the relationships between their selling prices, volume of sales, production costs, and profits. It is a systematic approach that enables businesses to make informed decisions about pricing, production levels, and other key operations that impact their bottom line. The other options (A, C, D) are not specific enough to describe this type of analysis.
Learning Objectives
- Utilize cost-volume-profit analysis in various business contexts.
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