Cost-Volume-Profit (CVP) Analysis is not referred to as Regression Analysis. The statement that CVP Analysis is also known as Regression Analysis is False.
Here's why:
1. Cost-Volume-Profit (CVP) Analysis: This type of analysis is a managerial accounting technique that focuses on the relationship between costs, volume, and profit in a business. It helps businesses understand how changes in costs and volume affect the company's profit. CVP Analysis is primarily used to make decisions related to pricing, sales mix, and cost control strategies.
2. Regression Analysis: On the other hand, Regression Analysis is a statistical method used to examine the relationship between two or more variables. It helps in identifying and quantifying the influence of one variable on another. Regression Analysis is commonly used in various fields such as economics, finance, and social sciences to analyze data and make predictions.
In conclusion, while both Cost-Volume-Profit (CVP) Analysis and Regression Analysis involve analyzing relationships, they are distinct methods with different purposes and applications. CVP Analysis focuses on cost, volume, and profit relationships in business decision-making, while Regression Analysis is a statistical tool used to analyze relationships between variables.
