Which of the Following Is Not an Assumption Used in CVP

question 30

Multiple Choice

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

• A)Revenues increase proportionally with sales volume.
• B)A flexible product mix.
• C)Selling prices, unit variable costs, and fixed costs are known with certainty.
• D)Single-period analysis.
• E)All of the above are assumptions used in CVP analysis.

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Definitions:

Competitive Instinct

The innate or developed drive to compete and strive for success against others.

Meta-Theories

Theoretical frameworks that are concerned with the analysis, interpretation, and critique of other theories within a discipline.

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth through the processes of natural selection, variation, competition, and inheritance.

General Relativity Theory

A fundamental theory in physics proposed by Albert Einstein, describing the force of gravity as a result of the curvature of spacetime caused by mass.