Business Management MCQ Questions and Solutions with Explanations | Management

Answer: Option C

Cost volume profit analysis is otherwise called as break even analysis. Break-even analysis is a technique widely used by production management and management accountants. It is based on categorising production costs between those which are "variable" (costs that change when the production output changes) and those that are "fixed" (costs not directly related to the volume of production).

Answer: Option B

Budget is a statement that reflects future incomes and expenditure. The budget statement is an estimate of revenues and expenses predefined for a specified period. It reflects the company's future financial conditions and helps to achieve financial goals.