Which of the Following Is Not an Assumption About the Data

question 107

Multiple Choice

Which of the following is not an assumption about the data when using CVP analysis?

• A)All costs can be easily and accurately separated into fixed and variable components.
• B)Total fixed costs remain at a constant level and variable costs per unit remain unchanged at all sales levels.
• C)More inventory is purchased than sold.
• D)A linear relationship exists between variable costs and sales activity over the relevant range of interest.

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Definitions:

Prospecting Process

The step in sales where potential customers are identified and qualified based on their likelihood to buy the product or service being offered.

Potential Leads

Individuals or entities that might have an interest in a product or service, representing possible future sales opportunities.

Prospects Scoring

A methodology for ranking potential customers based on their likelihood to convert into actual customers.

Email

A method of exchanging digital messages over the Internet, used for both personal and professional communication.