A Limiting Assumption in CVP Analysis Is That

question 100

Multiple Choice

A limiting assumption in CVP analysis is that:

• A) The behaviour of both revenues and costs is linear throughout the entire relevant range
• B) Inventories change in breakeven computations
• C) The sales mix is not constant
• D) Efficiency in operations is not constant

---

Definitions:

Favorable Outcomes

Results or consequences of actions that are beneficial, positive, or desirable from the perspective of the stakeholders involved.

Constructive Conflict

Involves disagreements that are expressed in a way that leads to productive resolutions, improved relationships, and creative solutions.

Frequent Debate

Regular and repeated engagement in structured discussions where opposing arguments are presented, aiming to explore and resolve complex issues.

Colleagues

Individuals one works with, especially within a professional setting, contributing to a shared goal or project.