The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called cost-volume-profit analysis.

Question

Quizplus · Accepted Answer

The process described in the statement is actually capital budgeting, which involves analyzing potential long-term investments in fixed assets. Cost-volume-profit analysis, on the other hand, is a tool used to analyze the relationship between costs, volume, and profits in the short-term.

The Process by Which Management Plans, Evaluates, and Controls Long-Term