Profit Is Indicated on a Cost-Volume-Profit Graph by

question 67

Multiple Choice

Profit is indicated on a cost-volume-profit graph by

• A)the profit line.
• B)the horizontal difference between the revenue line and the cost line.
• C)the vertical difference between the revenue line and the cost line.
• D)the horizontal distance from the breakeven point.

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Definitions:

Division Profit

This refers to the net income generated by a specific division or segment of a larger company.

Company-wide Profit

represents the total earnings of a company after all expenses and taxes have been deducted from revenue, reflecting the overall financial performance across all departments and activities.

Transfer Price

The cost at which products, services, or intellectual property are exchanged between departments inside the same corporation.

Fixed Costs

Expenses that remain constant regardless of the amount of output or sales, including lease payments, employee wages, and insurance costs.