Question

Service companies and notminusforminusprofit organizations​ ________. A. can use CVP by focusing on measuring the​ organization's output B. cannout use CVP because there is no way to distinguish fixed and variable costs C. can use CVP by treating all costs as variable D. cannout use CVP because they​ don't manufacture a product

Answer 1

Answer:

Explanation:

A. can use CVP by focusing on measuring the​ organization's output

Service companies and not-for-profit organizations​ can use CVP by focusing on measuring the​ organization's output.

Cost Volume Profit Analysis bothers on the profitability of company's output, whether it be a product manufacturing company or a service-rendering company.

In the case of a service company, Cost Volume Profit will be computed as: Profit = Service Price - Cost to provide service.

Answer 2

Answer:

A. can use CVP by focusing on measuring the​ organization's output

Explanation:

Service companies and not-for-profit organizations​ can use CVP by focusing on measuring the​ organization's output.

Cost Volume Profit Analysis bothers on the profitability of company's output, whether it be a product manufacturing company or a service-rendering company.

In the case of a service company, Cost Volume Profit will be computed as: Profit = Service Price - Cost to provide service.