On a CVP graph, what does the horizontal line intersecting the dollar axis at the level of total cost represent?
A) Total fixed costs
B) Breakeven point
C) Total variable costs
D) Total costs

Question

Quizplus · Accepted Answer

The horizontal line intersecting the dollar axis at the level of total cost represents total fixed costs, as these costs do not change with the level of production or sales.

On a CVP Graph, What Does the Horizontal Line Intersecting