Asked by Lucinda Donaldson on Apr 27, 2024
Verified
On a Cost-Volume-Profit graph for a profitable company, the total expense line will be steeper than the total revenue line.
Total Expense Line
A financial metric that represents the sum of all expenses encountered by a business, usually presented in the income statement.
Total Revenue Line
A financial metric representing the total amount of money generated from sales before any expenses are subtracted.
- Comprehend the visual portrayal of cost-volume-profit analysis.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
The total revenue line will be steeper than the total expense line for a profitable company. This is because as the company sells more units or services, the total revenue will increase at a faster rate than the total expenses.
Learning Objectives
- Comprehend the visual portrayal of cost-volume-profit analysis.
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