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:

Employer-Initiated

Actions or policies that are begun or implemented by an employer, often relating to workplace management, changes in operation, or employee relations.

Bargaining Impasse

A situation where the parties involved in negotiations are unable to reach an agreement, leading to a deadlock.

Lockout

An action taken by employers to prevent workers from entering the workplace during a labor dispute, essentially reversing a strike.

Management Rights

The legal and contractual rights that allow employers to manage, direct, and control their operations and workforce.