Answer the following statements true (T) or false (F)
1. CVP analysis assumes that the sales price per unit does not change as volume changes.
2. The breakeven point is the point where the sales revenues are equal to the fixed costs.
3. A CVP graph shows how changes in the level of sales will affect profits.
4. The fundamental assumption of cost-volume-profit (CVP) analysis is that, in the long run, fixed costs become variable costs.
5. CVP is also sometimes referred to as cost-volume-loss analysis because changes in sales
prices also affect profits (or losses).
1. True
2. False
3. True
4. False
5. False
You might also like to view...
The alliance between GE and Snecma got off with a feeble start due to the personal chemistry between the top two executives of respective companies
Indicate whether the statement is true or false
The following information is available for Baxter Manufacturing for April: Actual machine hours 840 Standard machine hours allowed 900 Denominator activity (machine hours) 1,000 Actual fixed overhead costs$3,800 Budgeted fixed overhead costs$4,000 Predetermined overhead rate ($1 variable + $4 fixed)$5 Is the production volume variance for April favorable or unfavorable?
A. Favorable. B. Unfavorable.
A ________ is defined as a piece of a product that delivers some useful functionality to a customer.
A. Value B. Scrum C. Feature D. Priority E. Spirit
List the traits that are typically associated with candidates who are likely to succeed in a global environment.
What will be an ideal response?