Cost-volume-profit analysis is useful for
A)helping managers to answer "what-if" questions.
B)implementing a differentiation strategy.
C)eliminating uncertainty about external factors, such as interest rates.
D)for long-range planning.
E)assigning costs to products.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is a tool used by managers to help them make decisions based on the relationships between the cost of production, volume of sales, and profit margin. It allows managers to test different scenarios and predict how changes in these factors will affect their bottom line. Therefore, it is useful for helping managers to answer "what-if" questions.

Cost-Volume-Profit Analysis Is Useful for