Asked by Vanesty Lozada on Apr 24, 2024
Verified
The concept of cost volume profit analysis is based on classifying costs as
A) fixed and variable costs.
B) variable product and period costs.
C) product controllable and uncontrollable costs.
D) fixed and variable costs AND variable product and period costs.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
Variable Costs
Expenses that change in proportion to the activity of a business, such as sales volume or production levels.
- Acquire insight into the contribution margin concept and its critical importance in the evaluation of break-even points.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
A
Explanation :
Cost volume profit analysis classifies costs into fixed and variable costs.
Learning Objectives
- Acquire insight into the contribution margin concept and its critical importance in the evaluation of break-even points.
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