Which of the following statements is not correct about cost-volume-profit analysis?
A)CVP analysis is a decision-making tool for managers.
B)CVP analysis focuses on the relationship among volume and mix of units sold,prices,variable costs,fixed costs,and profit.
C)CVP analysis works best when all variables are changed concurrently.
D)Managers use CVP analysis to evaluate how changing one key variable will impact profitability,while holding everything else constant.

Question

Quizplus · Accepted Answer

CVP analysis does not require all variables to be changed concurrently. In fact, it is often used to evaluate the impact of changing only one variable at a time while holding others constant.

Which of the Following Statements Is Not Correct About Cost-Volume-Profit