Cost-Volume-Profit Analysis Is Based on Necessary Assumptions

question 82

Multiple Choice

Cost-volume-profit analysis is based on necessary assumptions.Which of the following is not one of these assumptions?

• A)Costs can be classified as variable or fixed.
• B)Relevant range includes all possible levels of activity that a company might experience.
• C)Sales price and variable costs per unit of output remain constant as volume changes.
• D)A constant sales mix in a multiproduct company.
• E)Total fixed costs are held constant.

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Definitions:

Reliable

Describes something or someone that consistently performs well or can be trusted to be accurate.

Inconsistent

Lacking compatibility or uniformity; actions, beliefs, or statements that do not align or are contradictory.

Nanogram

A unit of mass equal to one billionth of a gram.

Religion Conflict

Disputes and tensions that arise due to differences in religious beliefs and practices.