In Order to Determine the Sales Volume Necessary to Achieve

question 98

Multiple Choice

In order to determine the sales volume necessary to achieve a desired profit level,CVP analysis would be applied for:

• A)Target costing.
• B)Cost planning.
• C)Profit planning.
• D)Revenue planning.
• E)Activity-based costing.

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Definitions:

Financial Accounting

The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.

Feasibility Analysis

An assessment of the practicality and potential success of a proposed business idea or project.

Maximum Daily Production

The highest quantity of goods or services a company can produce in a single day under normal operating conditions.

Managerial Accounting

The phase of accounting concerned with providing information to managers for use within the organization.