Cost Volume Profit Analysis Quizziz

Cost volume profit analysis can be used to determine the effects of reduced selling prices on break-even points. Increased fixed costs on break-even points, and reduced variable costs on break-even points.

• TRUE

• FALSE

In cost volume-profit analysis, a frequently made assumption is that the level of production is the same as the level of sales?

• TRUE

• FALSE

Cost-Volume profit analysis is a very precise tool in determining the profit consequences of cost changes, price changes, and volume change.

• TRUE

• FALSE

The contribution margin per unit is equal to the sales price per unit minus the variable cost per unit

• TRUE

• FALSE

On a typical break-even graph, units sold are shown on the vertical axis and both pesos of sales and pesos of costs are shown on horizontal axis.

• TRUE

• FALSE

The margin of safety can be expressed in units of product, in pesos, or as a percentage of sales.

• TRUE

• FALSE

The normal operating range of a business, which excludes extremely high and low levels of production that are not apt to be encountered, is the margin of safety.

• TRUE

• FALSE

The ratio in which a company's different products are sold is called the relevant mix

• TRUE

• FALSE

A synonym for cost volume profit analysis is break-even analysis

• TRUE

• FALSE

A key factor in almost any business decision is the impact the decision will have on the organization's profit.

• TRUE

• FALSE