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Unformatted text preview: True 16. Cost-volume-profit (CVP) analysis is the use of an understanding of the relationship among costs, volume, and profits to make managerial decisions. (Points: 5) True 17. Target-profit analysis is a technique used to find the volume of sales – in units or dollars – at which a company just covers its total costs. False 18. A company's margin of safety is the excess of the breakeven point over actual sales. (Points: 5) True 19. GAAP requires that absorption costing be used to prepare internal reports. (Points: 5) False 20. Direct labor, direct labor dollars, and machine hours are examples of activity bases. (Points: 5) True False...
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.
- Winter '11