Which of the Following Items Is NOT an Assumption of CVP

question 202

Multiple Choice

Which of the following items is NOT an assumption of CVP analysis?

• A)Total costs can be divided into a fixed component and a component that is variable with respect to the level of output.
• B)When graphed, total costs curve upward.
• C)The unit-selling price is known and constant.
• D)All revenues and costs can be added and compared without taking into account the time value of money.

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Definitions:

Dermatitis

A general term for inflammation of the skin, resulting in redness, itching, and sometimes blistering.

Atopic

Related to atopy, a genetic predisposition toward developing allergic hypersensitivity reactions such as eczema, asthma, or hay fever.

Onycholysis

The separation of the nail from the nail bed, a symptom that can be caused by trauma, infection, or systemic disease.

Nail

Keratinous extensions at the end of fingers and toes, serving protection and enhancing tactile function.