Which of the Following Assumptions Does NOT Pertain to Cost-Profit-Volume

question 2

Multiple Choice

Which of the following assumptions does NOT pertain to cost-profit-volume analysis?

• A)Sales price per unit remains constant.
• B)The sales mix is constant.
• C)Inventories in a manufacturing entity may go up or down.
• D)Fixed expenses are constant at all volumes of activities within the relevant range.

---

Definitions:

Snapshot

A visual or data representation capturing the state or conditions of a system at a particular moment in time.

Asset Turnover Ratio

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Industry Average

A benchmark or average measurement of performance or financial metrics within a particular industry sector.

Insolvency

A financial state in which an entity can no longer meet its debt obligations, leading to legal consequences such as bankruptcy.