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Unformatted text preview: D) Determine the profit margin the company wants to achieve. E) Determine the breakeven point using cost-volume-profit analysis. Answer: C 4. In cost-volume profit analysis (also called breakeven analysis), when the number of units changes, which of the following will also change: A) Total fixed costs B) Total variable costs C) Total sales revenues D) B and C above E) None of the above Answer: D In order for CVP to work, fixed costs have to remain constant. If units change, both revenue and variable costs change. 5. A budget is best described as: A) A formal statement of a company's future plans. B) A master control device. C) An informal statement of company future plans usually expressed in monetary terms. D) The most crucial component of a company evaluation process. E) The minimum acceptable performance level. Answer: A...
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- Summer '08