Under the Assumptions Used in Cost-Volume-Profit Analysis, as Volume Increases

question 22

Multiple Choice

Under the assumptions used in cost-volume-profit analysis, as volume increases:

• A) fixed costs increase in proportion to the increase in volume.
• B) variable costs per unit remain the same.
• C) fixed costs per unit remain the same.
• D) variable costs per unit increase in proportion to the increase in volume.

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Definitions:

Defensive Communication

Tendency to receive messages in such a way that one’s self-esteem is protected.

Self-Esteem

An individual's subjective evaluation or perception of their own worth, encompassing beliefs about oneself (e.g., "I am competent," "I am worthy") and emotional states such as triumph, despair, pride, and shame.

Communication Barriers

Obstacles that impede the exchange of information between individuals or groups, leading to misunderstandings or misinterpretations.

Receiver's Mental Set

The psychological and cognitive predispositions that influence how a listener interprets a message.