When Graphing Cost-Volume-Profit Data on a CVP Chart

question 185

Multiple Choice

When graphing cost-volume-profit data on a CVP chart:

• A) Units are plotted on the horizontal axis; costs on the vertical axis.
• B) Units are plotted on the vertical axis; costs on the horizontal axis.
• C) Both units and costs are plotted on the horizontal axis.
• D) Both units and cost are plotted on the vertical axis.
• E) Data points always represent expected future points.

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Definitions:

Equivalent Ratio

A ratio obtained from another ratio by multiplying each term by the same number, or by dividing each term by the same number.

Smallest Term

In mathematics, it refers to the term of minimal value in a sequence or among a set of terms.

Exchange Rate

The rate at which one currency can be exchanged for another, often fluctuating due to economic factors.

Canadian Dollars

The official currency of Canada, often symbolized as CAD or $, used in financial transactions within and outside of Canada.