Cost-volume-profit analysis is the study of the effects of
A) changes in costs and volume on a company's profit.
B) cost, volume, and profit on the cash budget.
C) cost, volume, and profit on various ratios.
D) changes in costs and volume on a company's profitability ratios.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis specifically focuses on how changes in costs and volume (or sales) can impact a company's profitability or profit levels. B, C, and D may be related to the financial analysis of a company, but they are not directly related to cost-volume-profit analysis.

Cost-Volume-Profit Analysis Is the Study of the Effects of