Which of the Following Underlying Assumptions Form(s)the Basis for Cost-Volume-Profit

question 48

Multiple Choice

Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?

• A)Revenues and costs behave in a linear manner.
• B)Costs can be categorized as variable,fixed,or semivariable.
• C)Worker efficiency and productivity remain constant.
• D)In multiproduct organizations,the sales mix remains constant.
• E)All of these are assumptions that underlie cost-volume-profit analysis.

---

Definitions:

Global

Pertaining to or involving the entire world; embracing all aspects of international relations, culture, and economic development.

Local Control

Pertains to the degree of authority and decision-making power retained at a local or regional level, as opposed to being centralized.

Job Sharing

When two or more employees perform the duties of one full-time position, each sharing the work activities on a part-time basis.

Temporary Layoffs

A situation where employees are suspended or laid off from their jobs for a period of time but are expected to return to their positions in the foreseeable future.