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One of the First Steps to Take When Using CVP

Question 103

Multiple Choice

One of the first steps to take when using CVP analysis to help make decisions is:


A) calculation of the degree of operating leverage for the company.
B) finding out where the total costs line intersects with the total revenues line on a graph.
C) estimating how many products will have to be sold to make a decent profit.
D) identifying which costs are variable and which costs are fixed.

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