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Cost-Volume-Profit (CVP)analysis Is a Simple but Powerful Tool to Assist

Question 43

Multiple Choice

Cost-volume-profit (CVP) analysis is a simple but powerful tool to assist management make operating decisions.Which of the following does not represent a potential use of CVP analysis?


A) Ability to compute the break-even point.
B) Ability to determine optimal sales volumes.
C) Aids in evaluating tax planning alternatives.
D) Aids in determining optimal pricing policies.

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