Which of the following statements about CVP analysis is false? O a. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. O b. All of the given answers are true. 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. Operating income calculations in CVP analysis are based on contribution margin not gross margin.

Which of the following statements about CVP analysis is false? O a. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. O b. All of the given answers are true. 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. Operating income calculations in CVP analysis are based on contribution margin not gross margin.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Which of the following statements about CVP analysis is false?
O a. Unit selling price, unit variable costs, and total fixed costs are known and remain constant.
Ob. All of the given answers are true.
Oc. 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. Operating income calculations in CVP analysis are based on contribution margin not gross margin.
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