The CVP graph shows profit and loss at any rate of activity.

Name: The CVP graph shows profit and loss at any rate of activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The CVP (Cost-Volume-Profit) graph shows how profit and loss are affected by changes in the level of activity, such as production or sales volume. It shows the break-even point, where revenue equals total costs, as well as the profit or loss at any rate of activity above or below the break-even point.

The CVP Graph Shows Profit and Loss at Any Rate