Which of the Following Items Is NOT an Assumption of CVP

question 181

Multiple Choice

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

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

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A tax deduction method that allows an owner or operator of a mine or other natural resources to deduct a percentage of the resource's value as it is depleted.

Asset/Liability Method

An approach in accounting where income taxes are adjusted based on the differences between the financial reporting and tax bases of assets and liabilities.