Cvp analysis using activity-based costs


Question: Because activity-based costing creates cost drivers for detailed-level indirect cost, CVP analysis using activity-based costs will tend to shift cost from fixed to variable classifications, resulting in:

  • Lower breakeven sales.
  • Higher breakeven sales.
  • No change in breakeven sales.
  • A higher contribution margin per unit.
  • A lower contribution margin per unit.

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Accounting Basics: Cvp analysis using activity-based costs
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