Select the Incorrect Statement Regarding Cost-Volume-Profit Relationships for Multiple Products

question 122

Multiple Choice

Select the incorrect statement regarding cost-volume-profit relationships for multiple products.

• A) For a company that sells many different products, the level of the break-even point is affected by the company's sales mix.
• B) An increase in sales volume accompanied by a change in sales mix could cause a company's profits to decrease.
• C) For a multi-product company, cost-volume-profit analysis can be done using the contribution margin ratio of the most profitable product.
• D) None of these answers is correct.

---

Definitions:

Genital Stage

A phase in Freud's psychosexual development focused on mature sexual interests and activities, usually beginning in puberty.

Anal

Pertaining to the anus, often used in a psychological context to describe personality traits associated with the anal stage of psychosexual development.

Oral

Relates to the mouth, including the act of speaking or consuming, often used in contexts ranging from communication methods to intake of food and medicine.

Phallic

Pertaining to the third stage in Freud's psychosexual development, characterized by a focus on genital organs and the conflict with sexual identity and desires.