Cost-Volume-Profit AnalysisMODULE 4COST-VOLUME-PROFIT ANALYSISTHEORIES:1.To which function of management is CVP analysis most applicable?A. PlanningC. DirectingB. OrganizingD. ControllingBobadilla
2.The systematic examination of the relationships among sellingprices, volume of sales and production, costs, and profits is termed:
3.The term contribution margin is best defined as the:
4.Cost-volume-profit analysis allows management to determine therelative profitability of a product byD.Keeping fixed costs to an absolute minimum.Bobadilla
5.Cost-volume-profit analysis cannot be used if which of the followingoccurs?
6.The most useful information derived from a breakeven chart is the
B.Amount of sales revenue needed to cover enterprise fixed costs.C.Relationship among revenues, variable costs, and fixed costs at variouslevels of activity.
7.Which of the factors is (are) involved in studying cost-volume-profitrelationships?A.Levels of productionC.Fixed costs
8.At the breakeven point, fixed cost is always
9.At the break-even point:A. net income will increase by the unit contribution margin for eachadditional item sold above break-even.