Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

For what reasons might a business use cost-volume-profit analysis?

  • Ato act as a basis for long-term planning
  • Bto assist in the valuation of inventory
  • Cto decide which costs are fixed and which are variable
  • Dto understand the relationship between sales volume and profit

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