When Interpreting a CVP Graph Which of the Following Is

question 121

Multiple Choice

When interpreting a CVP graph which of the following is NOT correct?

• A) When sales are below the breakeven intersection the company incurs a loss.
• B) The breakeven point is where the total revenue line meets the fixed cost line.
• C) The anticipated profit or loss at any given level of sales is measured by the vertical distance between the total revenue line and the total expense line.
• D) The total revenue line starts at the origin.

---

Definitions:

Current Law

The body of existing statutes, regulations, and case law as recognized by a legal jurisdiction at the current time.

Digital Detox

The practice of reducing or eliminating the use of digital devices temporarily to decrease stress and improve quality of life.

Productive Hours

The periods during a day in which an individual or workforce is most effective and produces the most output.

Technology

The application of scientific knowledge for practical purposes, especially in industry and digital developments.