Accounting · Cost-Volume-Profit Analysis
Arrange the following to describe the sequence involved in Cost Volume Profit Analysis (CVP): A. Establishing the fixed and variable costs related to the product B. Drawing up break-even charts which establish the point at which sales start to produce profit C. Working out P/V ratio by calculating contribution as a proportion of sales revenue D. Determining the cumulative effect of each product on profitability to assess the effects of change in product mix E. Calculating the relationship between sales volume and sales revenue by actual or assumed unit prices
- 1A, B, E, C, D
- 2A, C, B, E, D
- 3A, E, B, C, D
- 4A, E, C, B, D✓
Correct answer
A, E, C, B, D
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