When Drawing a Cost-Volume-Profit Graph,how Are the Axes Labeled

question 2

Multiple Choice

When drawing a cost-volume-profit graph,how are the axes labeled?

• A) The horizontal axis would be labeled with dollars (of cost or revenue), while the vertical axis would be labeled with number of units (volume or activity).
• B) The horizontal axis would be labeled with dollars (of total fixed costs), while the vertical axis would be labeled with dollars (of total variable costs).
• C) The horizontal axis would be labeled with number of units (volume or activity), while the vertical axis would be labeled with dollars (of cost or revenue).
• D) None of these answers is correct.

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