Cost-volume-profit analysis focuses on the break-even point and the impact of changes in fixed costs and price.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis indeed focuses on the break-even point where the company's revenues and expenses are equal, and any increase in revenue above that point results in a profit. It also considers the impact of changes in fixed costs, variable costs, and selling price on the company's profits.

Cost-Volume-Profit Analysis Focuses on the Break-Even Point and the Impact