The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed
A) contribution margin analysis
B) cost-volume-profit analysis
C) budgetary analysis
D) gross profit analysis

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis is a tool that helps businesses understand their financial performance by examining the relationships between their selling prices, volume of sales, production costs, and profits. It is a systematic approach that enables businesses to make informed decisions about pricing, production levels, and other key operations that impact their bottom line. The other options (A, C, D) are not specific enough to describe this type of analysis.

The Systematic Examination of the Relationships Among Selling Prices, Volume