Cost-volume-profit analysis examines A. the difference between the selling price and variable cost per unit. B. the behavior of total revenues, total costs, and operating income as changes occur in the output level, selling price, variable cost per unit, or fixed costs of a product. C. how much a company can charge for its products over and above the cost of acquiring or producing them. D. the "what-if" technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes. Click to select your answer.

Option B is the correct answer because Cost-Volume Profit analysis is the changes that arosed in profit due to the increase or decrease in the cost of unit product. It also measures the implications of increase or decrease of volume of units sold on the core operations of the company.

Option A is incorrect because the difference in selling price and variable cost is contribution which is the concept of marginal costing technique.

Furthermore, Option C is also incorrect because pricing is different from the cost volume profit analysis because it tells what must be the price of the product depending upon the cost of the product and market research.

Option D is also incorrect because "what if?" deals with changing any variable and keeping the other aspects of the company constant and taking a look on the outcomes arising due to the change.

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