Which of the Following Is an Assumption of Cost-Volume-Profit (CVP)analysis

question 36

Multiple Choice

Which of the following is an assumption of cost-volume-profit (CVP) analysis?

• A)The price per unit does not change as volume changes.
• B)Mangers classify all costs as mixed.
• C)Total fixed costs change in the relevant range.
• D)The number of products produced exceeds the number of products sold.

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Definitions:

Change Blindness

A psychological phenomenon where an individual fails to notice significant changes in their visual field when such changes occur during a visual disruption.

Consciousness

The condition in which an individual is conscious of and can contemplate their own being, feelings, ideas, environment, and life events.

Cocktail Party Effect

The brain's ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when a person can focus on a single conversation in a noisy room.

Inattentional Blindness

A cognitive phenomenon where an individual fails to perceive an unexpected stimulus in plain sight, due to their focus being engaged on another task or aspect of the environment.