A cost-volume-profit chart is also known as a(n)
A) Operating profit chart.
B) Operating leverage chart.
C) Break-even chart.
D) Margin of safety chart.
E) Sales chart.

Question

Quizplus · Accepted Answer

A cost-volume-profit chart is also known as a break-even chart, as it shows the point at which total costs equal total revenue, and the business is neither making a profit nor facing a loss. The chart depicts the relationship between various levels of sales volumes, costs, and profits. Operating profit chart, operating leverage chart, margin of safety chart, and sales chart are different types of financial analysis tools, but they are not equivalent to a cost-volume-profit chart.

A Cost-Volume-Profit Chart Is Also Known as A(n)