Question

To prepare a CVP graph, lines must be drawn representing total revenue, O total expense, and profit O total expense, and total fixed expense O break-even point, and profit O total variable expenses, and total fixed expense

Answer 1

Option B (Total expense, total fixed expense) Cost volume profit (CVP) graph is a cost management tool which represents the relation between the units produced and the cost of those produced units taking into account the revenues, total expenses and fixed costs. It helps the managers easily understand the Break-even point and the company's Margin of Safety.