Which statements correctly describe cost-volume-profit analysis?
1- It assumes a linear relationship between costs, revenue and volume.
2- It can be used in ‘what if’ analysis.
3- It is a useful tool in long-term decision making.
4- It shows how costs, revenue and profit change in relation to sales volume.
1 )
1, 2 and 3
1 , 2 and 4
3 )
2 and 4 only
4 )
3 and 4
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