Which of the Following Assumptions Is Implicit in the Simplified

question 46

Multiple Choice

Which of the following assumptions is implicit in the simplified contribution approach income statement?

• A) There are two cost drivers, both units of production and units of sales.
• B) The fixed expenses do vary with either units of production or units of sales.
• C) Units of production and units of sales are equal.
• D) Inventory levels in units do change.

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