Three Important Assumptions in Cost-Volume-Profit Analysis Is That (1) ________

question 210

Short Answer

Three important assumptions in cost-volume-profit analysis is that (1) ________ per unit is constant, (2) ________ per unit is constant, and (3) ________ are constant in total.

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Definitions:

Cost Control

The practice of identifying and reducing business expenses to increase profits, involving the analysis and management of cost elements.

Standard Costs

The planned cost of manufacturing a product, which includes material, labor, and overhead costs, used for budgeting and performance evaluation.

Accounting System

A structured process used to record, track, and manage financial transactions and the financial position of an entity.

Standards

Preset criteria or benchmarks used to measure, compare, or judge quality, performance, or compliance.