Which One of the Following Is Not an Assumption of CVP

question 93

Multiple Choice

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

• A) All units produced are sold.
• B) All costs are variable costs.
• C) Sales mix remains constant.
• D) The behavior of costs and revenues are linear within the relevant range.

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Definitions:

Expense Ratios

A measure of what an investment fund charges its shareholders for portfolio management, expressed as a percentage of the fund's assets.

Absolute Measures

Statistical tools used to assess the total magnitude of an entity or phenomenon without comparison to other entities or phenomena.

Profitability

The financial metric that measures the degree to which a company or a project generates profit compared to its costs.

Standards

Established norms or criteria in various fields that define quality, performance, or procedures to ensure consistency and reliability.