Cost-Volume-Profit Analysis Is a Technique Available to Management to Understand

question 103

Multiple Choice

Cost-volume-profit analysis is a technique available to management to understand better the interrelationships of several factors that affect a firm's profit.As with many such techniques,the accountant oversimplifies the real world by making assumptions.Which of the following is not a major assumption underlying CVP analysis?

• A)All costs incurred by a firm can be separated into their fixed and variable components.
• B)The product selling price per unit is constant at all volume levels.
• C)Operating efficiency and employee productivity are constant at all volume levels.
• D)For multi-product situations,the sales mix can vary at all volume levels.

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Definitions:

Tend and Befriend Syndrome

A theory proposing that in response to stress, individuals, particularly women, are predisposed to nurturing activities and seeking social support.

Female Pattern

Refers to the typical distribution of traits, behaviors, or conditions more common or exclusive to females.

General Stress

General stress refers to the overall pressure or tension experienced by an individual, which can result from various aspects of life including work, personal relationships, or health issues.

Narcissistic Personality

A psychological condition characterized by an inflated sense of self-importance and a deep need for excessive attention and admiration.