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:

Prokaryotic

Referring to organisms, such as bacteria and archaea, that lack a nucleus and other membrane-bound organelles.

Archaea

A category of unicellular microorganisms that are genetically different from both bacteria and eukaryotes, frequently located in harsh environments.

Cell Theory

A fundamental principle in biology stating that all living organisms are composed of cells, which are the basic unit of life, and that all cells come from pre-existing cells.

Matthias Schleiden

A German botanist and co-founder of cell theory, who in 1838 proposed that all plant tissues are composed of cells and that plant growth results from the production and expansion of these cells.