The cost-volume-profit graph:
A) plots the total fixed cost line and the operating income line.
B) plots the total revenue line and the total cost line.
C) plots the total fixed cost line and the total variable cost line.
D) All of these are correct.

Question

Quizplus · Accepted Answer

The cost-volume-profit graph shows the relationship between revenue, cost, and profit. It plots the total revenue line and the total cost line, which helps to determine the break-even point and the level of profit or loss at different levels of sales. The graph does not include the total fixed cost line or the total variable cost line, making options A and C incorrect. Option D is incorrect because it includes all of the options, but only B is correct.

The Cost-Volume-Profit Graph