alleryStart learning →Analysing how costs, volume and profit interact is called:
ACredit-risk-rating analysis
BCapital-budget-cycle analysis
CCost-volume-profit analysis
DCash-flow-forecast analysis
Answer & Solution
Correct answer: C. Cost-volume-profit analysis
1. The name of the technique lists the three things it relates.
2. The analysis relates costs, sales volume and profit.
3. What you have just completed is a cost-volume-profit analysis.
4. It is usually abbreviated to CVP analysis.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 3 'Cost-Volume-Profit Analysis'_
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