The graph, which shows the change in sold quantity and its effect on operating income is called ___________?
Correct answer: A. PV graph
- A. PV graph
- B. CV graph
- C. SO graph
- D. QI graph
Explanation
A profit-volume graph shows how changes in sales quantity affect operating income. CV graphs focus more broadly on the relationship among cost, volume, and profit.
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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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