Which of the following distinguishes a profit-volume graph from a cost-volume-profits graph?
A)Costs are associated with units produced.
B)Operating income is associated with expected sales.
C)Revenues and costs are associated with sales volume.
D)Revenues are expected at targeted sales levels.

Question

Quizplus · Accepted Answer

A profit-volume (PV) graph specifically illustrates the relationship between operating income and sales volume, distinguishing it from a cost-volume-profit (CVP) graph, which typically shows the relationships among costs, revenues, and sales volume, but not directly the operating income in relation to sales volume.

Which of the Following Distinguishes a Profit-Volume Graph from a Cost-Volume-Profits