Which of the following statements about the cost-volume-profit graph is false?

A) It can be used to identify both profit areas and loss areas.
B) It shows the relevant range of total revenue.
C) It cannot be used to make managerial decisions involving step-wise costs.
D) It can be used to identify break-even points.

Cost-Volume-Profit Graph

A visual representation that shows how changes in cost and volume affect a company's profit.

Step-Wise Costs

Costs that remain fixed over a range of activity but will increase in a step-like manner when a certain threshold is reached.

Break-Even Points

The volume of production or sales at which total revenues equal total expenses, resulting in no net profit or loss, used for financial analysis and planning.