Which of the Following Is Not an Assumption of CVP

question 99

Multiple Choice

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

• A)Costs can be accurately separated into fixed and variable components.
• B)Fixed costs per unit remain constant within the relevant range.
• C)Total variable costs are proportional to the level of activity.
• D)Selling price per unit remains the same at all activity levels.

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Definitions:

Abstract Qualities

Attributes or concepts that are not tangible or concrete, such as ideas, values, and emotions, and require a level of abstract thinking to understand.

Objective Theory of Knowledge

A perspective in epistemology that suggests knowledge is based on objective facts, independent of individual perceptions or beliefs.

Evaluativist Theory

A perspective in cognitive development that emphasizes the role of evaluation in understanding and interpreting information or beliefs.

Formal Operational Thinking

The stage in cognitive development (typically occurring from age 12 onwards) where individuals develop the ability to think abstractly, logically, and systematically.