Which of the Following Statements Is Not Correct About Cost-Volume-Profit

question 16

Multiple Choice

Which of the following statements is not correct about cost-volume-profit analysis?

• A)CVP analysis is a decision-making tool for managers.
• B)CVP analysis focuses on the relationship among volume and mix of units sold,prices,variable costs,fixed costs,and profit.
• C)CVP analysis works best when all variables are changed concurrently.
• D)Managers use CVP analysis to evaluate how changing one key variable will impact profitability,while holding everything else constant.

---

Definitions:

Jobless Recovery

A situation where the economy begins to recover from a recession, but the unemployment rate remains high or continues to increase.

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.

Stimulus Package

A collection of fiscal and monetary policies implemented by a government to stimulate a struggling economy.

Fiscal Policy

Governmental adjustments in spending levels and tax rates aimed at influencing economic activity.