Cost-Volume-Profit Analysis Cannot Be Used If Which of the Following

question 97

Multiple Choice

Cost-volume-profit analysis cannot be used if which of the following occurs?

• A) Costs cannot be properly classified into fixed and variable costs.
• B) The total fixed costs change.
• C) The per-unit variable costs change.
• D) Per-unit sales prices change.

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Definitions:

Stated Rate

The interest rate stated on the face of a bond or other fixed-income security, which is used to calculate the interest payments to the bondholders.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are instead issued at a substantial discount from their face value.

Interest Expense

The cost incurred by an entity for borrowed funds, paid to the lender as a form of compensation for the use of the loan.