Question
he cost-volume-profit analysis assumption is that units produced equal units sold.
True
False
True
False
Answers
GPT-4o mini
**True.**
In cost-volume-profit (CVP) analysis, it is typically assumed that the number of units produced equals the number of units sold. This assumption simplifies the analysis by eliminating complexities related to inventory changes, allowing for a straightforward calculation of profit based on sales volume, costs, and price.
In cost-volume-profit (CVP) analysis, it is typically assumed that the number of units produced equals the number of units sold. This assumption simplifies the analysis by eliminating complexities related to inventory changes, allowing for a straightforward calculation of profit based on sales volume, costs, and price.