IIA CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3-3P Question # 128 Topic 13 Discussion

IIA CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3-3P Question # 128 Topic 13 Discussion

IIA-CIA-Part3-3P Exam Topic 13 Question 128 Discussion:
Question #: 128
Topic #: 13

Which of the following statements is true regarding cost-volume-profit analysis?


A.

Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.


B.

Breakeven point is the amount of units sold to cover variable costs.


C.

Breakeven occurs when the contribution margin covers fixed costs


D.

Following breakeven, net operating income will increase by the excess of fixed costs less the variable costs per units sold


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