Which of the Following Is NOT an Underlying Assumption of Cost-Volume-Profit

question 18

Multiple Choice

Which of the following is NOT an underlying assumption of cost-volume-profit analysis?

• A)We can classify expenses into fixed and variable categories.
• B)Sales mix will be constant.
• C)Revenues and expenses are linear over the relevant range.
• D)There will be changes in efficiency or productivity.

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Definitions:

State Registration Requirement

Legal stipulation that mandates entities or individuals to register with state authorities for conducting certain activities.

Initial Public Offering

The process by which a private company offers shares to the public for the first time to raise capital.

Securities Act

U.S. legislation enacted in 1933 that regulates the sale of securities to the public, requiring disclosure of significant information.

Publicly Held

Describes a company whose shares are traded openly on stock exchanges and can be purchased by the general public.