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.

Recognize the implications of peak multiplicities in carbon-13 NMR spectra.

Relate molecular mass information from MS (Mass Spectroscopy) data to the molecular formula of organic compounds.

Understand the conditions under which nonparametric tests are used versus parametric tests.

Know the assumptions and conditions specific to the sign test and the Wilcoxon tests, such as sample size requirements and data types.

---

Definitions:

Temporary Difference

A discrepancy between the carrying amount of an asset or liability in the balance sheet and its tax base, creating taxable or deductible amounts in the future.

Straight-Line Depreciation

A technique for distributing the cost of an asset uniformly over its lifespan.

Capital Cost Allowance

Capital Cost Allowance is a tax deduction in some jurisdictions that represents depreciation for tax purposes, allowing businesses to deduct the cost of certain assets over a period.

Deferred Tax

A tax obligation or asset that results from temporary differences due to the different timing of recognition of income and expenses for tax and accounting purposes.