Cost-Volume-Profit Analysis Is Based on Necessary Assumptions

question 67

Multiple Choice

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

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