Question

A useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales is called ______. profit margin analysis the income effect the contribution per unit break-even analysis

Answer 1

Answer:

Cost Volume Profit Analydis

Explanation:

Cost Volume Profit Analysis is also known as Break-Even Analysis. This is the application of marginal costing and seeks to study the relationship between costs volume and profits at different levels and can be used as a useful guide for short term planning and decision making. Cost Volume Profit Analysis is a technique that examines changes in profits in response to changes in sales volume, costs and prices.