Which of the following statements about CVP analysis is false?O a. Operating income calculations in CVP analysis are based on contribution margin not grossmargin.O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant.O c. Managers use (CVP) analysis to study the behavior of and relationship among the elementssuch as total revenues, total costs, and incomeO d. Total revenues and total costs are linear in relation to output units.O e. All of the given answers are true.OUS PAGEFINISH ATTEMPT ...F1F2F3F4F5F6F7F8F1023%&23478.VQWTAFK13C VBYNI M24S

Cost volume profit analysis is the analysis in which the relationship between cost, volume and…

Which of the following statements about CVP analysis is false O a. Operating income calculations in CVP analysis are ba margin. O b. Unit selling price, unit variable costs, and total fixed c Oc. Managers use (CVP) analysis to study the behavior of such as total revenues, total costs, and income

Which of the following statements about CVP analysis is false O a. Operating income calculations in CVP analysis are ba margin. O b. Unit selling price, unit variable costs, and total fixed c Oc. Managers use (CVP) analysis to study the behavior of such as total revenues, total costs, and income

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4MCQ

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Question

Which of the following statements about CVP analysis is false?
O a. Operating income calculations in CVP analysis are based on contribution margin not gross
margin.
O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant.
O c. Managers use (CVP) analysis to study the behavior of and relationship among the elements
such as total revenues, total costs, and income
O d. Total revenues and total costs are linear in relation to output units.
O e. All of the given answers are true.
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On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
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