Which of the following forms a part of decision making in CVP analysis?
A) selection of inventory method for financial reporting purposes
B) decision to form a capital policy
C) decision to advertise
D) decision to improve the efficiency of the work force

Question

Quizplus · Accepted Answer

The decision to advertise is a key part of CVP (Cost-Volume-Profit) analysis as it directly impacts the volume of sales and thus affects the overall profitability of the company. Selection of inventory method for financial reporting purposes, decision to form a capital policy and decision to improve the efficiency of the work force are not directly related to the CVP analysis.

Which of the Following Forms a Part of Decision Making