Which of the Following Assumptions Is NOT Necessary for Cost-Volume-Profit

question 59

Multiple Choice

Which of the following assumptions is NOT necessary for cost-volume-profit analysis?

• A)Total variable costs are linear.
• B)Total revenues increase when total costs increase.
• C)Inventories are constant.
• D)The product sales mix is constant.

---

Definitions:

Predetermined Time Standards

Benchmarks or norms established in advance for the completion of tasks based on analyses of work measurements.

Unions

Organizations formed by workers from related fields that work together to protect and advance their rights and interests.

Laboratory Setting

A controlled environment designed for scientific research, experiments, or testing.

Therbligs

The 18 basic motions used in motion study, developed by Frank and Lillian Gilbreth, to analyze the physical movements needed to perform a task efficiently.