One of the First Steps to Take When Using CVP

question 144

Multiple Choice

One of the first steps to take when using CVP analysis to help make decisions is:

• A)finding out where the total costs line intersects with the total revenues line on a graph.
• B)identifying which costs are variable and which costs are fixed.
• C)calculation of the degree of operating leverage for the company.
• D)estimating how many products will have to be sold to make a decent profit.

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Definitions:

Resource Pricing

The determination of the price of resources or inputs used in production, based on factors like scarcity, demand, and cost of extraction.

Occupations

Various forms of employment or professions where individuals earn a living by performing specific tasks or services.

Fastest Growing

Referring to entities, such as industries or economies, that experience the most rapid expansion in terms of revenue, size, or influence within a specific period.

Elasticity

An indicator of the degree to which the demand or supply of a product fluctuates following a variation in its price.