Which of the Following Are Necessary Assumptions When Using the Contribution

question 119

Multiple Choice

Which of the following are necessary assumptions when using the contribution margin method of determining the break-even point?

• A)Average unit costs must be known.
• B)There must be an input-related cost driver.
• C)Fixed costs are irrelevant.
• D)Total variable cost must be known.
• E)Unit selling price and unit variable cost must be known.

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Definitions:

Age Discrimination

Unfair treatment of an individual or group based on their age, particularly in employment settings.

ADEA

Age Discrimination in Employment Act, a U.S. law designed to protect workers and job applicants aged 40 and over from age-based discrimination.

Bona Fide Occupational Qualification

An employment qualification that an employer can legally consider while making decisions about hiring and retaining employees, provided it is reasonably necessary to the normal operation of the particular business.

Hostile-Environment Sexual Harassment

Unwelcome sexual conduct that creates an intimidating, hostile, or offensive working environment.