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.