What Is Represented in a Cost-Volume-Profit Graph

question 97

Multiple Choice

What is represented in a cost-volume-profit graph ?

• A)The slope of the total cost line is dependent on the variable cost per unit.
• B)The total cost line normally begins at zero.
• C)The total revenue line typically begins above zero.
• D)The slope of the total revenue line is the contribution margin per unit.

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Definitions:

Finished Product

A completed item that is ready for sale or has been sold.

Raw Material

The basic materials from which products are made, typically unprocessed or minimally processed resources.

Finished Product

Items that have completed the manufacturing process and are ready for sale to customers.

End-Of-Month Inventory

The total value of all inventory held by a company at the end of the month, including raw materials, work in progress, and finished goods.