Which of the Following Is an Assumption Made in a Multiproduct

question 129

Multiple Choice

Which of the following is an assumption made in a multiproduct environment?

• A)The sales mix can be determined and will remain constant.
• B)The sales mix must be broken into variable, fixed, and mixed costs.
• C)The relevant range will vary with a change in activity.
• D)Fixed costs are no longer static.

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Definitions:

Expected Demand

An estimate of the quantity of a product or service that consumers will purchase in the future, often used for planning and inventory management.

Demand Probability

The likelihood that a specific level of demand will occur within a certain period.

Monte Carlo Simulation

An algorithm that utilizes multiple instances of random sampling to generate numerical outcomes, commonly applied in assessing risks and making decisions.

Cumulative Probability

The probability that a random variable is less than or equal to a specific value, representing the accumulation of individual probabilities.