CVP Analysis Does Not Consider

question 63

Multiple Choice

CVP analysis does not consider

• A) level of activity.
• B) fixed cost per unit.
• C) variable cost per unit.
• D) sales mix.

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Definitions:

Units-Of-Production

A strategy for depreciation which assigns the cost of a property over its operational life, based on the volume of output it yields.

Double-Declining-Balance

An accelerated method of depreciation that doubles the regular depreciation rate, allowing for faster depreciation of assets in the early years.

Straight-Line

A method of calculating depreciation or amortization by dividing the difference between an asset's cost and its salvage value by the number of years it is expected to be used.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.