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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Definitions:

Closed Communication

A style or system of communication where information is tightly controlled and not freely accessible.

Nondisclosing

A communication style where an individual chooses not to share certain information.

Total Disclosure

The act of revealing every piece of relevant information or fact without withholding anything, often in the context of communication or negotiation.

Real Feelings

Real feelings refer to genuine emotions and expressions that are not fabricated or influenced by external factors.