Which of the Following Items Is NOT an Assumption of CVP

question 123

Multiple Choice

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

• A)Costs may be separated into separate fixed and variable components.
• B)Total revenues and total costs are linear in relation to output units.
• C)Unit selling price, unit variable costs, and unit fixed costs are known and remain constant.
• D)Proportion of different products will remain constant when multiple products are sold.

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Definitions:

Constant Internal State

The concept of maintaining a stable, consistent internal environment in an organism, also known as homeostasis.

An Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli that is unlearned.

An Instinct

A fixed, innate pattern of behavior in animals in response to certain stimuli.

Robins

Small, common songbirds known for their reddish-orange breasts and melodious songs.