A CVP Graph Shows How Changes in the Level of Sales

question 122

True/False

A CVP graph shows how changes in the level of sales will affect profits.

Calculate and analyze transfer prices between divisions.

Calculate profit margin, investment turnover, and return on investment for divisions.

Determine and analyze residual income for divisions.

Understand and apply the DuPont formula to calculate return on investment.

---

Definitions:

Nephridium

Of some invertebrates, an organ that takes up body fluid and expels excess water and solutes through a pore at the body surface.

Flatworms

These are a group of invertebrate animals belonging to the phylum Platyhelminthes, known for their flat, bilateral bodies and lack of body cavity.

Excess Water

A surplus amount of water in an area or system, which can result from heavy rainfall, flooding, or inadequate drainage.

ADH Signal

The ADH signal typically refers to the action of antidiuretic hormone in the body, signaling the kidneys to conserve water.