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What Is the Purpose of Doing a Cost-Volume-Profit (CVP)analysis

Question 1

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What is the purpose of doing a cost-volume-profit (CVP) analysis?


A) CVP analysis provides managers with information used for control only.
B) CVP analysis allows managers to do sensitivity analysis by examining the impact of various prices or costs on volume.
C) CVP analysis shows how revenues, expenses, and profits behave as volume changes.
D) CVP analysis is effectively used by single-product firms only.

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