Cost-Volume-Profit (CVP) Analysis: Variable and Fixed Cost Behavior

• A cost that is only incurred when the activity level is at its peak
• A cost that remains constant regardless of the level of activity
• A cost that varies in direct proportion to changes in the level of activity (correct)
• A cost that increases exponentially with the level of activity

• It is only incurred when the activity level is at its peak
• It remains constant regardless of the level of activity (correct)
• It varies in total in direct proportion to changes in the level of activity
• It increases exponentially with the level of activity

• The point where total costs exceed sales revenue
• The point where profit is maximized
• The point where no profit or loss is incurred (correct)
• The point where sales revenue exceeds total costs

<p>The difference between actual sales and the break-even sales (A)</p> Signup and view all the answers