Which of the Following Is Not an Underlying Assumption of CVP

question 102

Multiple Choice

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

• A) Changes in activity are the only factors that affect costs.
• B) Cost classifications are reasonably accurate.
• C) Beginning inventory is larger than ending inventory.
• D) Sales mix is constant.

---

Definitions:

Data

Quantitative or qualitative information collected for reference, analysis, or computation.

Processed Information

pertains to data that have been transformed through processing operations, such as sorting, filtering, or summarizing, to make it meaningful and useful for decision-making.

Decision Support Systems

Computer-based systems used by organizations to support decision-making processes.

Business Decisions

Choices made by businesses concerning strategic direction, operations, and policies with the aim of achieving organizational goals.