When the Assumption of Linearity Is Applied to Revenue in CVP

question 44

Multiple Choice

When the assumption of linearity is applied to revenue in CVP analyses

• A) Fixed cost per unit increases as revenue decreases
• B) Variable cost per unit is linear with respect to total revenue
• C) The sales mix and all of the prices remain constant
• D) The sales mix remains constant, but prices decrease as volumes increase

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Standing Policy

A policy established for an indefinite duration, often outlining guidelines and procedures for routine operations and decisions.

Sexual Harassment

Unwanted and inappropriate sexual remarks or physical advances in a workplace or other professional or social situations.

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A budgeting approach that starts from a "zero base" every new period, analyzing and justifying every expense before it is approved.