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.

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Definitions:

Normally Distributed

Describes a data set where most values cluster around a central mean value, forming a symmetric, bell-shaped distribution curve.

Standard Deviation

A statistical measurement of variability or dispersion within a set of data, indicating how spread out the numbers are from the average.

Mean

A statistical measure representing the average or central value of a set of numbers, calculated by adding all the values and dividing by the count of the values.

Z-score

A statistical measure representing the number of standard deviations a data point is from the mean of its distribution.