Which of the Following Assumptions Is NOT Necessary for Cost-Volume-Profit

question 80

Multiple Choice

Which of the following assumptions is NOT necessary for cost-volume-profit analysis?

• A)total variable costs are linear
• B)total revenues increase when total costs increase
• C)inventories are constant
• D)the product sales mix is constant

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Definitions:

Endowment Effect

The psychological phenomenon where individuals value an owned object higher than its market value.

Natural Talent

Inborn abilities or aptitudes that an individual possesses, often manifesting as exceptional skills or competencies in specific areas.

Hard Work

A consistent effort or diligence in accomplishing a task or achieving a goal.

Recalled Memory

A memory that has been brought back to mind or consciously remembered.