When graphing cost-volume-profit data on a CVP chart:

A) Units are plotted on the horizontal axis; costs on the vertical axis.
B) Units are plotted on the vertical axis; costs on the horizontal axis.
C) Both units and costs are plotted on the horizontal axis.
D) Both units and cost are plotted on the vertical axis.
E) Data points always represent expected future points.

EA) In a CVP chart, units are typically plotted on the horizontal (x) axis, and costs (both fixed and variable) are plotted on the vertical (y) axis. This setup allows for the visualization of how costs change with different levels of production or sales volume.E) CVP analysis is forward-looking and is used for planning and decision-making purposes. Therefore, the data points on a CVP chart represent expected or projected future amounts, not historical data.