On a CVP graph,there is a point where the two diagonal lines intersect.Which of the following statements accurately describes that point?

Question

Quizplus · Accepted Answer

The point where the two diagonal lines intersect on a CVP graph represents the break-even point, which is the point where total costs (fixed and variable) equal total revenues. Therefore, option C accurately describes that point. Option A is incorrect because fixed costs are not taken into account in the calculation of total revenue. Option B is also incorrect because the break-even point represents the point where total costs are equal to total revenues, not just fixed costs. Option D is incorrect because total variable costs do not take into account fixed costs, which are also incurred by the company.

On a CVP Graph,there Is a Point Where the Two