Which of the Following Is $\textbf{ not }$

question 34

Multiple Choice

Which of the following is $\textbf{ not }$ a limiting assumption of multiproduct CVP analysis?

• A)All variable costs relationships are linear with respect to activity.
• B)The sales mix can be determined and will remain constant.
• C)Cost can be separated into fixed and variable components.
• D)The relevant range will vary with a change in activity.

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Definitions:

Inventory Cost Formulas

Methods used to determine the cost of inventory sold and ending inventory value, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

FIFO

First In, First Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.