Managers can use cost-volume-profit analysis to:
I. Plan operating activity levels
II. Achieve targeted profits
III. Monitor organizational performance
A) I only
B) II and III only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Cost-volume-profit (CVP) analysis is a tool that managers use to determine how changes in costs and volume affect a company's operating income and net income. It helps in planning operating activity levels (I), achieving targeted profits (II), and can also be used to monitor organizational performance (III) by comparing actual results with the CVP model's predictions.

Managers Can Use Cost-Volume-Profit Analysis To