Which of the following is not involved in CVP analysis?
- Sales mix.
- Unit selling prices.
- Fixed costs per unit.
- Volume or level of activity.
Explanation
Sales mix:
While the overall sales mix can affect profitability,
CVP analysis assumes that the relative proportions of different products sold (i.e., the sales mix) remain constant within a given period.
If the sales mix changes significantly, the calculations based on the initial assumption will be inaccurate
Sales Mix is not involved in CVP analysis.
Cost consist of fixed and variable cost.
Cost volume profit involves selling price, level of activity,fixed cost but does not include sale mix.
It states how profit change because of change in volume,fixed cost and selling price.
Related MCQs
پاکستان میں مانیٹری پالیسی کی تشکیل کا ذمہ دار ہے۔ ____
- SECP
- Ministry of Finance
- State Bank of Pakistan
- None of these
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کلائنٹس کو کیا کہا جاتا ہے؟
- Sellers
- Customers
- Employees
- None of these
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ایف ڈی آئی کا مطلب کیا ہے؟
- Foreign Direct Investment
- Foreign Development Investment
- Foreign Doable Initiatives
- None of these
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- 166,780
- 168,750
- 175,000
- 180,000
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ایف آر ایس اڑتیس کس اکاؤنٹنگ تصور سے متعلق ہے؟
- Prudence
- Substance Over Form
- Going Concern
- Consistency
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