Why is profit volume ratio used?
1. To compute the variable cost for any volume of sales.
2. To determine break-even point and the level of output required to earn a desired profit.
3. To decide most profitable sales mix.
Select the correct answer:
A. Both 1 and 2
B. Both 2 and 3
C. Both 1 and 3
D. All of the above
Answer: Option D
This Question Belongs to Management >> Management Accounting
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