Cost-Volume-Profit (CVP)analysis Is More Complicated for Organizations with Multiple Products

question 69

True/False

Cost-volume-profit (CVP)analysis is more complicated for organizations with multiple products because typically each product has a different contribution margin ratio.Multiple products makes in necessary to develop a weighted-average contribution margin in order to calculate break even.

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Definitions:

Psychological Adjustment

The process by which individuals maintain or regain a state of well-being, coping with and overcoming stresses and challenges.

Adaptation

The process by which organisms adjust to changes in their environment for better survival.

Divorce Rates

The statistical measure showing the number of divorces occurring among the population during a given year, often per 1,000 people.

Remarry

The act of marrying again after the dissolution of a previous marriage, through divorce or widowhood.