In a CVP Graph,the Area Between the Total Cost Line

question 99

Multiple Choice

In a CVP graph,the area between the total cost line and the total fixed cost line yields the

• A)fixed costs per unit.
• B)total variable costs.
• C)profit.
• D)contribution margin.

---

Definitions:

Transfer Prices

Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.

Decentralized Units

Separate divisions or departments within an organization that operate semi-autonomously, with their management responsible for certain decisions and operations.

Investment Centers

Segments or units within an organization for which the manager is responsible for generating revenue and controlling costs, often evaluated based on their return on investment.

Profit Centers

Segments or departments within a business that are responsible for generating profits and are evaluated on their profitability performance.