which is correct from these attached?
Cost-Volume-Profit Analysis
Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.
Marginal Costing
Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.
which is correct from these attached?
![Multiple Choice
Repayments of principal and interest reduce financing activities cash flows.
O
Purchase of common stock shares for treasury is a cash outflow connected to investing activities.
If a company borrows $450 million in long-term notes and repays $380 million of long-term notes, these items
must both be disclosed separately and not netted against each other in the financing section of the cash flow
statement.
Issuing common stock in exchange for the purchase of a building creates both a financing activity and
investing activity cash flow.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd960bb05-f8e9-458e-8dc8-ba896c5de05d%2F964526f2-8f85-48d4-a963-ac1a49454a54%2Fhuwkxcf_processed.png&w=3840&q=75)
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