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Ibrahim Sesay
on Nov 12, 2024

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In cost-volume-profit analysis, all costs are classified into which of the following two categories?

A) mixed costs and variable costs
B) sunk costs and fixed costs
C) discretionary costs and sunk costs
D) variable costs and fixed costs

Cost-volume-profit Analysis

A managerial accounting method used to estimate the impact of different levels of cost and volume on operating profit.

Mixed Costs

Expenses that have both fixed and variable components, changing in total with activity level but not directly proportional.

Variable Costs

Variable costs are expenses that change in proportion to the activity or volume of a business, such as raw materials and labor costs that vary with production levels.

  • Perform cost-volume-profit (CVP) analysis and calculate the break-even point.
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Nilay SomaniNov 17, 2024
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