How Does Cost-Volume-Profit Analysis Allows Management to Determine the Relative

Multiple Choice

How does cost-volume-profit analysis allows management to determine the relative profitability of a product?

A) By highlighting potential bottlenecks in the production process.
B) By keeping fixed costs to an absolute minimum.
C) By determining the contribution margin and projected profits at various levels of production.
D) By assigning costs to a product in a manner that maximizes the contribution margin.