Cost-Volume-Profit Analysis Cannot Be Used If Which of the Following

question 97

Multiple Choice

Cost-volume-profit analysis cannot be used if which of the following occurs?

• A) Costs cannot be properly classified into fixed and variable costs.
• B) The total fixed costs change.
• C) The per-unit variable costs change.
• D) Per-unit sales prices change.

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Definitions:

Nonrival

A characteristic of a good or service where one person's use does not diminish its availability to others.

Marginal Cost

The increase in total production cost that arises from producing one additional unit of a good or service.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Nonexcludable

A characteristic of a good where it is not possible to prevent individuals from accessing or consuming the good.