Question 6. Question : CVP analysis for revenue and cost
planning has the primary
objective of:
Student Answer:
Maximizing revenue.
Minimizing costs.
Both revenue maximization and cost minimization.
Achieving a desired level of sales and profits.
Consistently producing sales above the breakeven level.
Question 7. Question : The CVP profit-planning model
assumes that over the relevant
range of activity:
Student Answer:
Only revenues are linear.
Only revenues and fixed costs are linear.
Only revenues and variable costs are linear.