The systematic examination of the relationships among selling prices,volume of sales and production,costs,expenses,and profits is termed
A)contribution margin analysis.
B)cost-volume-profit analysis.
C)budgetary analysis.
D)gross profit analysis.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis (also known as break-even analysis) is the systematic examination of the relationships among selling prices, volume of sales and production, costs, expenses, and profits. It is used to determine the level of sales needed to break even, as well as the level of sales needed to achieve a desired target profit. The analysis is typically done in conjunction with a profit and loss statement and can inform decisions around pricing, volume, and cost control.

The Systematic Examination of the Relationships Among Selling Prices,volume of Sales