Cost-volume-profit analysis cannot be used if which of the following occurs?
A) Costs cannot be properly classified into fixed and variable costs.
B) The total fixed costs change.
C) The per-unit variable costs change.
D) Per-unit sales prices change.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis requires proper classification of costs into fixed and variable costs. If costs cannot be properly classified, the analysis cannot be done accurately.

Cost-Volume-Profit Analysis Cannot Be Used If Which of the Following