Which of the Following Is Not an Assumption of Cost-Volume-Profit

question 113

Multiple Choice

Which of the following is not an assumption of cost-volume-profit (CVP) analysis?

• A)The number of units sold is the only revenue driver and the only cost driver.
• B)Total costs can be separated into two components.
• C)When represented graphically,the behaviors of total revenues and total costs are linear.
• D)Selling price,variable cost per unit,and total fixed costs are known and constant.
• E)The total costs are never separated into components in this analysis.

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Definitions:

Implicit Personality Theory

The assumptions people make about how different types of personalities and traits are related and how they affect behavior and beliefs.

Online Interactions

Communications or exchanges that occur via digital platforms or the internet.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

External Factors

Elements outside an individual or organization that can affect its performance or outcomes, such as economic conditions or competition.