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Question 172 - IIA-CIA-Part3 discussion

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Which of the following statements is true regarding cost-volume-profit analysis?

A.
Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.
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A.
Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.
B.
Breakeven point is the amount of units sold to cover variable costs.
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B.
Breakeven point is the amount of units sold to cover variable costs.
C.
Breakeven occurs when the contribution margin covers fixed costs.
Answers
C.
Breakeven occurs when the contribution margin covers fixed costs.
D.
Following breakover1, he operating income will increase by the excess of fixed costs less the variable costs per units sold.
Answers
D.
Following breakover1, he operating income will increase by the excess of fixed costs less the variable costs per units sold.
Suggested answer: C
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asked 18/09/2024
wilson tan
45 questions
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