All of the Following Are Assumed in a Cost-Volume-Profit Analysis

question 106

Multiple Choice

All of the following are assumed in a cost-volume-profit analysis EXCEPT:

• A)a constant product mix.
• B)fixed costs increase when activity increases.
• C)revenue per unit does not change as volume changes.
• D)all costs can be classified as either fixed or variable.

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Definitions:

Economic Behavior

The study of how individuals make decisions to allocate resources under conditions of scarcity.

Selfishness

A trait characterized by concern with one's own interests, often disregarding others' well-being or desires.

Utility

The satisfaction or benefit that a consumer receives from consuming a good or service.

Pleasure

A feeling of happiness or satisfaction derived from experiencing or consuming something.