Which of the Following Is NOT an Assumption of Cost-Volume-Profit

question 60

Multiple Choice

Which of the following is NOT an assumption of cost-volume-profit (CVP) analysis?

• A) The only factor that affects total costs is a change in volume, which increases or decreases total variable and mixed costs.
• B) The price per unit does not change as volume changes.
• C) Total fixed costs do not change.
• D) The price per unit changes as volume changes.

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA).

Sperm

The male reproductive cells capable of fertilizing a female's egg to produce offspring.

Egg

The female reproductive cell or gamete in animals and plants; an ovum.

Vagina

A muscular tube connecting the external genitals to the cervix of the uterus in females, part of the reproductive system.