Cost-Volume-Profit Analysis Is Based on Certain General Assumptions

question 91

Multiple Choice

Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?

• A) Product prices will remain constant as volume varies within the relevant range.
• B) Costs can be categorized as fixed, variable, or semivariable.
• C) The efficiency and productivity of the production process and workers will change to reflect manufacturing advances.
• D) Total fixed costs remain constant as activity changes.
• E) Unit variable cost remains constant as activity changes.

Understand the distinction and application of System 1 and System 2 in decision-making processes.

Recognize various cognitive biases and their impact on economic behavior.

Comprehend the role of advertising and media in economic decisions.

Identify common errors in personal forecasting and planning due to cognitive biases.

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Definitions:

Quality Of Work

Refers to the degree to which a task or output meets predetermined standards and satisfies the needs of clients or customers.

Human Resource

The department within a business that is charged with finding, screening, recruiting, and training job applicants, as well as administering employee-benefit programs.

Self-directed Teams

Groups of employees who are given the autonomy to plan, execute, and monitor their own tasks and projects within a company.

Supervisors

Individuals responsible for overseeing and guiding the activities of employees or workers within an organization.