Explain why cost-volume-profit analysis can be useful to managers
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Because CVP analysis emphasizes the interrelationships of costs, quantity sold, and price, it brings together all of the financial information of the firm. CVP analysis can be a valuable tool to identify the extent and magnitude of the economic trouble a division is facing and to help pinpoint the necessary solution. CVP analysis can address many other issues as well, such as the number of units that must be sold to break even, the impact of an increase in price on profit. Additionally, CVP analysis allows managers to do sensitivity analysis by examining the impact of various prices or cost levels on profit.
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The actual return earned on a bond is highly dependent upon the reinvestment rate of the coupons
Indicate whether the statement is true or false.
One of the most valuable attributes of the Web is the ability to ________
A) provide companies with instantaneous customer feedback B) enable the site to create an appearance that the organization is able to meet customer needs that, in fact, are not possible based on its actual resources C) eliminate advertising expenses and the amount of printed materials needed to facilitate promotional efforts D) encourage the use of credit cards as a means of paying for the online transaction