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.