Which of the Following Assumptions Might Negatively Affect the Validity

question 56

Multiple Choice

Which of the following assumptions might negatively affect the validity of a CVP analysis?

• A)Costs can be accurately separated into fixed and variable components.
• B)Fixed costs remain fixed, and variable costs per unit do not change over the activity levels of interest.
• C)Both the assumptions-costs can be accurately separated into fixed and variable components, and fixed costs remain fixed, and variable costs per unit do not change over the activity levels of interest-negatively affect the validity of a CVP analysis.
• D)None of these answer choices are correct.

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Definitions:

Unified View

A cohesive perspective that integrates different aspects or theories into a single, comprehensive understanding.

Face Validity

Assesses whether an instrument appears to look like it measures what it is meant to measure.

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Accuracy

The degree to which a measurement, calculation, or specification conforms to the correct value or a standard.