Which of the Following Is Not an Underlying Assumption of a Conventional

question 42

Multiple Choice

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

• A) Learning-curve effects (i.e., productivity gains with experience).
• B) Fixed costs, in total, do not change as sales mix or total sales volume change.
• C) Selling price per unit is unrelated to assumed sales volume.
• D) Inputs to the profit-planning model are known with certainty.
• E) Variable costs per unit are unrelated to changes in volume.

---

Definitions:

Academic Aptitude

Refers to an individual's capacity to learn, understand, and perform well in an academic setting.

General Intelligence

A theoretical construct that involves the ability to think abstractly, reason, understand complex ideas, and solve problems.

Multiple Intelligences

A theory proposed by Howard Gardner that suggests individuals have different kinds of intelligences, such as linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, intrapersonal, and naturalist.

Analytical Intelligence

The ability to analyze, evaluate, judge, or compare and contrast information.