[amp_mcq option1=”Change in selling price” option2=”Change in variable cost” option3=”Change in contribution” option4=”Change in fixed cost” correct=”option4″]<\/p>\n
The correct answer is: D. Change in fixed cost<\/strong><\/p>\n Cost-volume-profit (CVP) analysis is a tool that helps businesses understand the relationship between their costs, volume of sales, and profits. It can be used to predict the impact of changes in these factors on a business’s bottom line.<\/p>\n CVP analysis does not present a statement of the impact of net profit on change in fixed cost because fixed costs are not affected by changes in volume of sales. Fixed costs are costs that remain the same regardless of the number of units sold. For example, rent, insurance, and salaries are all fixed costs.<\/p>\n If a business’s volume of sales increases, its variable costs will also increase. Variable costs are costs that vary directly with the number of units sold. For example, the cost of materials and labor are both variable costs.<\/p>\n However, a business’s fixed costs will not change if its volume of sales increases. This is because fixed costs are not affected by changes in the number of units sold.<\/p>\n Therefore, CVP analysis does not present a statement of the impact of net profit on change in fixed cost.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Change in selling price” option2=”Change in variable cost” option3=”Change in contribution” option4=”Change in fixed cost” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-47852","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n