Which of the Following Is Not a Characteristic of CVP-Based

question 5

Multiple Choice

Which of the following is not a characteristic of CVP-based sensitivity analysis?

• A)Disregards the various fixed-cost structures.
• B)Helps managers evaluate various fixed-cost structures.
• C)Helps managers evaluate various variable-cost structures.
• D)Highlights the risks as fixed costs are substituted for variable costs in a company's cost structure.
• E)Highlights the returns as fixed costs are substituted for various costs in a company's cost structure.

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Definitions:

Negotiations

The process of discussion aimed at reaching an agreement or compromise between two or more parties.

Offeree's Silence

A legal concept where the silence of the party to whom an offer is made does not generally constitute acceptance of the offer.

Acceptance

The act of agreeing to the terms of an offer, thus completing the process of making a contract binding.

Negotiations

The process of discussing terms andconditions in order to reach a mutual agreement or compromise.