Cost-Volume-Profit Analysis Is Based on Certain General Assumptions

question 91

Multiple Choice

Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?

• A) Product prices will remain constant as volume varies within the relevant range.
• B) Costs can be categorized as fixed, variable, or semivariable.
• C) The efficiency and productivity of the production process and workers will change to reflect manufacturing advances.
• D) Total fixed costs remain constant as activity changes.
• E) Unit variable cost remains constant as activity changes.

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Petroleum

A liquid mixture of hydrocarbons present in certain rock strata, used primarily as a fuel source.

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Natural resources found beneath the Earth's surface, used as crucial energy sources and raw materials in various industries.

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A geological formation where a column of salt moves upward through overlying sediments, often forming a dome-like structure.

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A fault zone is a region of the Earth's crust characterized by one or more faults, which are fractures along which there has been displacement of the sides relative to one another.