If Production Volume Does Not Equal Sales Volume

question 58

Multiple Choice

If production volume does not equal sales volume:

• A)we must adjust the CVP formulas for that fact to use CVP.
• B)we cannot use CVP,since an assumption is violated.
• C)the CVP analysis will always indicate a breakeven point that cannot be reached.
• D)the conclusions we draw from a CVP analysis will not be as sound as they would be if we assumed production equaled sales.

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