Which Statement Is NOT an Assumption Used to Prepare a Cost-Volume-Profit

question 24

Multiple Choice

Which statement is NOT an assumption used to prepare a cost-volume-profit graph?

• A) The sales mix is constant.
• B) The constant cost fluctuates.
• C) Units produced equals units sold.
• D) Linear costs are within the relevant range.

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Definitions:

Expected Rates Of Return

Expected rates of return refer to the anticipated profit or loss from an investment, often based on historical data and analysis of future potentials.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured annually.

Profits

The financial gains obtained when revenue from business activities exceeds expenses, costs, and taxes.