C-V-P Analysis Is Useful to Managers In

question 53

Multiple Choice

C-V-P analysis is useful to managers in:

• A) Planning
• B) Controlling decisions
• C) Evaluating decisions
• D) All of these are correct

---

Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to gauge the relative value of a company.

Market Price Per Share

The current price at which a share of a company's stock can be bought or sold.

Net Working Capital Turnover

A ratio that measures how effectively a company utilizes its net working capital to support sales.

Return on Equity

A financial ratio that measures the profitability of a company in relation to the shareholder's equity.