CVP analysis is least likely to be used for which of the following decisions?
A) The amount of discretionary expenditures for the next period.
B) The organisational vision.
C) The exact level of operations at which the organisation will operate.
D) Whether to buy a business segment operating in Germany.

Question

Quizplus · Accepted Answer

CVP (Cost-Volume-Profit) analysis is primarily used for decisions that directly affect costs, sales, and ultimately profit, such as determining the level of operations or discretionary expenditures. It is not typically used for defining the organizational vision, which is a strategic decision not directly related to the cost, volume, and profit relationship.

CVP Analysis Is Least Likely to Be Used for Which