One of the Major Assumptions Used in CVP Analysis Is

question 34

Multiple Choice

One of the major assumptions used in CVP analysis is:

• A) that number of units sold each year remains the same.
• B) that in a multi-product environment, all products are assumed to be sold in identical proportion to total sales.
• C) that the tax rate is not known.
• D) that the sales price of a product will not change as volume changes.

---

Definitions:

Subcutaneous Tissue

The layer of tissue directly under the skin, consisting of connective tissue and fat, which provides insulation and cushioning for the body.

Wound Healing

The biological process by which the skin and tissues repair themselves after injury, involving several stages including hemostasis, inflammation, proliferation, and remodeling.

Diabetic Mellitus

A metabolic disease characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin secretion, insulin action, or both.

Circulatory Insufficiency

A condition where the blood supply is inadequate, leading to insufficient oxygen and nutrient delivery to tissues.