In the process of examining, occurred changes in total revenues, operating income and costs is known as _____________?
Correct answer: D. cost volume profit analysis
- A. revenue analysis
- B. costs analysis
- C. operating income analysis
- D. cost volume profit analysis
Explanation
Cost-volume-profit analysis examines how changes in sales revenue, costs, and operating activity affect operating income. The other choices focus on only one component rather than their combined relationship.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
If the contribution per unit is $900 and the number of units sold is $70, then the contribution margin will be _____________?
If the contribution margin per unit is $1000 and the contribution margin percentage is 25%, then the selling price would be ____________?
If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be __________?
The contribution margin per unit is $500 per unit and the breakeven per unit is $35, then the fixed cost would be ___________?
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The product costing technique in which markup component is added into cost base, to set a target price is known as __________?