Managers Use Cost-Volume-Profit (CVP) Analysis to ________

question 97

Multiple Choice

Managers use cost-volume-profit (CVP) analysis to ________.

• A) forecast the cost of capital for a given period of time
• B) to study the behavior of and relationship among the elements such as total revenues, total costs, and income
• C) estimate the risks associated with a given job
• D) analyse a firm's profitability and help to decide wealth distribution among its stakeholders

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Definitions:

Annuity

A fiscal product offering a consistent payout pattern, mainly aimed at supplying funds for individuals in retirement.

Discount Rate

In DCF analysis, the interest rate employed to find out the present value of cash flows expected in the future.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Investment Goal

The financial objective or target that an investor aims to achieve through investments.