Which of the Following Is NOT a Use of CVP

question 109

Multiple Choice

Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis?

• A)the ability to conduct sensitivity analysis of cost or price changes
• B)the identification of price and efficiency variances
• C)how many units must be sold to break even
• D)what is the impact on the break-even point of an increase or decrease in fixed costs

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Definitions:

Carrying Amount

The carrying amount is the value of an asset as represented in the accounting records, factoring in depreciation, amortization, and impairment costs.