Cost-volume-profit analysis is a tool for determining the profit consequences of future cost changes, price changes, and volume of activity changes. True False Cost-volume-profit analysis is used to predict future costs to be incurred, volumes of activity, scale to be made, and profit to be earned. True False Cost-volume-profit analysis can be used to compute expected income predicted sales and cost levels. True False The margin of safety is the amount that sales can drop before the company incurs a loss. True False The dollar amount of sales needed to achieve a target income is computed by dividing the sum of fixed costs plus the target income by the contribution margin ratio. True False The margin of safety can be expressed in units of product, in dollars, or as a percent of sales. True False The method most likely to produce the most precise line of cost behaviour and required the least amount of judgment is the scatter diagram. True False Contribution, margin per unity is the amount but which product's unit selling price exceeds its total variable cost per unit. True False The contribution margin ratio is the percent of each sales dollar that remains after deducting the total unit variable cost. True False The extent, or relative size, of fixed costs in the total cost structure is known as operating leverage. True False