Which of the Following Is Not a Key Assumption Using

question 75

Multiple Choice

Which of the following is not a key assumption using CVP analysis?

• A)Capacity is available with no limitations on the supply of raw materials.
• B)Selling prices, unit variable costs, and fixed costs are known with certainty.
• C)Variable costs and revenue increase proportionately with sales volume.
• D)CVP will always provide the best answer for short-term decisions.

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Definitions:

Communication Models

Theoretical frameworks describing how information is transmitted and received between communicators, encompassing various elements like sender, message, medium, receiver, and feedback.

Communication Process

The method and means by which information and ideas are exchanged between individuals or groups, involving a sender, message, medium, and receiver.

Decoder

A device or program that translates encoded data into its original format, or an individual who interprets complex information.

Receiver

In communication, the individual or entity that interprets and potentially responds to a message sent by a sender.