Cost-Volume-Profit (CVP)analysis Is a Simple but Powerful Tool to Assist

question 43

Multiple Choice

Cost-volume-profit (CVP) analysis is a simple but powerful tool to assist management make operating decisions.Which of the following does not represent a potential use of CVP analysis?

• A)Ability to compute the break-even point.
• B)Ability to determine optimal sales volumes.
• C)Aids in evaluating tax planning alternatives.
• D)Aids in determining optimal pricing policies.

---

Definitions:

Significant

Having a particularly important, notable, or consequential value or impact.

Persistent Annoyance

A continuous or recurring irritation that may affect one's performance, mood, or interactions negatively.

Self-serving Bias

A cognitive bias where individuals attribute their successes to internal factors and their failures to external factors.

Blindness of Involvement

The phenomenon where individuals become so engrossed in their own perspective or role that they are unable to understand or see the situation from another's viewpoint.