Which of the Following Is an Assumption of CVP Analysis

question 92

Multiple Choice

Which of the following is an assumption of CVP analysis?

• A)Costs must be separated into separate fixed and variable components.
• B)Total revenues and total costs are curvilinear in relation to output units.
• C)Given revenue mixed of products is dynamic.
• D)There will be a change between beginning and ending levels of inventory.
• E)The time value of money must be taken into account.

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Definitions:

Strategic Behavior

The actions taken by companies or individuals in anticipation of their rivals' actions and reactions to maximize their own benefits.

Influences Market Price

Factors or conditions that affect the selling price of goods or services in a market, including supply, demand, competition, and external economic conditions.

Barriers

Obstacles or impediments that prevent or hinder progress, such as trade barriers which can restrict the flow of goods between countries.

Control Over Price

The ability of a company or market to influence or set the price of goods and services.