Which of the Following Is Not an Assumption of Conventional

question 12

Multiple Choice

Which of the following is not an assumption of conventional cost/volume/profit (CVP) analysis?

• A) The variable cost per unit varies over the relevant range of activity.
• B) The sales mix is unchanged over the relevant range of activity.
• C) Total fixed cost is constant over the relevant range of activity.
• D) Total variable cost changes in direct proportion to changes in the level of activity over the relevant range.
• E) The total revenue function is linear within the relevant range.

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Definitions:

Functionalist Theory

A sociological perspective that emphasizes the way in which the parts of a society are structured to maintain its stability and functionality.

Two Solitudes

A phrase often used to describe the situation of lack of communication and understanding between two different groups or cultures.

Canadians

People originating from Canada, a country in the northern part of North America.

Immigrants

Individuals who move from one country to another with the intention of settling permanently or for an extended period.