Which of the Following Is Not an Underlying Assumption of CVP

question 102

Multiple Choice

Which of the following is not an underlying assumption of CVP analysis?

• A) Changes in activity are the only factors that affect costs.
• B) Cost classifications are reasonably accurate.
• C) Beginning inventory is larger than ending inventory.
• D) Sales mix is constant.

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Definitions:

Alkaline

Having a pH greater than 7, indicating a base where concentration of hydroxide ions is greater than that of hydrogen ions.

Blood

A body fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

pH

A scale measuring the acidity or alkalinity of a solution, where 7 is neutral, values below 7 are acidic, and values above 7 are alkaline.