Cost-Volume-Profit Analysis Is Not Appropriate for Service Businesses,as They Do

question 60

True/False

Cost-volume-profit analysis is not appropriate for service businesses,as they do not have any direct manufacturing costs.

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Definitions:

Forced Transaction

A sale or trade that occurs under pressure, often lacking the free will or consent of one of the parties involved.

Dissolution

The official closure of an entity, such as a corporation or partnership, with legal processes to disband and distribute assets.

Court Order

A formal instruction or command issued by a court, requiring a person or entity to do or refrain from doing something.

Stakeholders

Groups, other than the company’s shareholders, that are affected by corporate decisions. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.