Which of the Following Is Not an Assumption in CVP

question 136

Multiple Choice

Which of the following is not an assumption in CVP analysis?

• A) Actual costs will be exactly the amount that we predict in the analysis
• B) Operations are within the relevant range
• C) The revenue function is linear
• D) The cost function is linear

---

Definitions:

Winding Up

The process of closing down a company by settling its liabilities and distributing any remaining assets to its shareholders.

Converting Assets

The process of changing assets from one form to another, often from non-liquid assets into cash or cash equivalents.

Confession Of Judgment

A legal agreement in which a debtor consents to a judgment against them, allowing the creditor to obtain a judgment without undergoing the standard court process.

Sale Of Office Computer

The process of selling a computer that is considered as an asset or property of an office or business.