Cost-volume-profit analysis can only be performed for companies that sell only one product.Firms that sell more than one product can use multiproduct cost-volume-profit analysis.

Question

Quizplus · Accepted Answer

This statement is false. Multiproduct cost-volume-profit analysis is a technique that can be used by firms that sell more than one product to determine the profitability of individual products and the overall profitability of the business. It involves analyzing the sales mix and contribution margin of each product to determine the breakeven point and the level of sales required to achieve a desired profit.

Cost-Volume-Profit Analysis Can Only Be Performed for Companies That Sell