Service companies and not-for-profit organizations ________.

Question

Quizplus · Accepted Answer

Service companies and not-for-profit organizations can use CVP by focusing on measuring the organization's output, such as the number of clients served or the number of people reached. By using this output measure, they can then determine the fixed and variable costs associated with providing their services, allowing them to use CVP analysis to make decisions about pricing, volume, and profitability. They cannot treat all costs as variable as there are costs, such as rent or salaries, that are typically fixed regardless of the level of output.

Service Companies and Not-For-Profit Organizations ________