The most useful information derived from a cost-volume-profit chart is the
A)amount of sales revenue needed to cover enterprise variable costs.
B)amount of sales revenue needed to cover enterprise fixed costs.
C)relationship among revenues,variable costs,and fixed costs at various levels of activity.
D)volume or output level at which the enterprise breaks even.

Question

Quizplus · Accepted Answer

The cost-volume-profit (CVP) chart is a graphical representation that shows the relationship among the revenues, variable costs, and fixed costs at various levels of activity. This helps in understanding how changes in volume affect costs and profitability.

The Most Useful Information Derived from a Cost-Volume-Profit Chart Is