Which of the Following Underlying Assumptions Form(s) the Basis for Cost-Volume-Profit

question 37

Multiple Choice

Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?

• A) Revenues and costs behave in a linear manner.
• B) Costs can be categorized as variable, fixed, or semivariable.
• C) Worker efficiency and productivity remain constant.
• D) In multiproduct organizations, the sales mix remains constant.
• E) All the answers are assumptions that underlie cost-volume-profit analysis.

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