On a Profit-Volume Chart, the Slope of the Graph Is

question 22

Multiple Choice

On a profit-volume chart, the slope of the graph is equal to:

• A)profit per unit.
• B)variable costs per unit.
• C)contribution margin per unit.
• D)fixed plus variable costs per unit.

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Definitions:

Net Operating Loss Carryforward

This is a tax provision that allows a company to apply a tax year's net operating losses to future years' profits in order to lower tax liabilities.

US GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used in the financial reporting of companies.

IFRS

International Financial Reporting Standards, a set of accounting principles that provide guidelines for financial reporting and are recognized globally.

Deferred Taxes

Deferred taxes are future tax liabilities or assets, reflecting the temporary differences between the accounting income and taxable income.