Which of the Following Is Not an Assumption of Multiproduct

question 50

Multiple Choice

Which of the following is not an 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.

---

Definitions:

Sustainable Use

Utilization of natural resources in a way that maintains their viability and preserves their ecological balance for future generations.

Nonrenewable Materials

Materials or resources that cannot be replaced once consumed, such as fossil fuels, minerals, and metals, often leading to concerns over their depletion and environmental impact.

Internalize External Costs

The process of accounting for the environmental and societal costs of economic activities in the price of goods and services.

Tradable Pollution Rights

An economic strategy for pollution control that rewards the decrease in pollutant discharges through financial incentives.