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:

Assumptions

Beliefs or ideas taken for granted without verification.

Social Identity Theory

A psychological framework that explains how individuals define themselves and others based on group memberships, leading to in-group favoritism and out-group discrimination.

Self-Concept

An individual's perception of themselves, including awareness of their characteristics and abilities.

Mental Models

Cognitive frameworks consisting of our assumptions and understanding of the world, which we use to interpret and respond to situations.