Which of the Following Is NOT an Underlying Assumption of Cost-Volume-Profit

question 140

Multiple Choice

Which of the following is NOT an underlying assumption of cost-volume-profit analysis?

• A) We can classify expenses into fixed and variable categories.
• B) In multiproduct companies, sales mix will be constant.
• C) Revenues and expenses are linear over the relevant range.
• D) The inventory level changes significantly during the period.

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Definitions:

Audience Shock

A reaction from the audience characterized by surprise, disbelief, or dismay, often caused by unexpected information or the manner in which it's presented.

Indirect Approach

A communication strategy that addresses the main point or issue at the end of the message, often used to soften bad news.

Negative Messages

Communications that convey unfavorable, disappointing, or unwanted information to the recipient.

Bad News

Bad news pertains to information or updates that are negative, disappointing, or undesirable to the recipient.