Which One of the Following Is an Assumption of CVP

question 46

Multiple Choice

Which one of the following is an assumption of CVP analysis?

• A)Sales in units remain constant.
• B)All costs are variable.
• C)The change in beginning and ending inventories is reflected in the analysis.
• D)The behaviour of costs and revenues are linear within the relevant range.

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Definitions:

Recursive Method

A method in programming that calls itself in order to solve a problem by breaking it down into smaller sub-problems.

Return a Value

In programming, the process of sending a value back to the calling function as the result of a function call.