Which one of the following is true of the CVP income statement?

Question

Quizplus · Accepted Answer

The CVP income statement is primarily used internally by management to analyze the cost-volume-profit relationship of a company. It focuses on separating costs into variable and fixed categories and helps management determine the breakeven point and target profits. While some of its information may be included in external financial statements, it is not a standalone statement provided to all financial statement users. Additionally, it does not specifically provide the amount of gross profit or separate manufacturing from non-manufacturing costs.

Which One of the Following Is True of the CVP