Which Statement Is an Assumption of a Cost-Volume-Profit Analysis

question 130

Multiple Choice

Which statement is an assumption of a cost-volume-profit analysis?

• A) Revenue and costs behave in a linear manner.
• B) More inventory is produced than is sold in the period.
• C) Sales price and costs vary within the relevant range.
• D) Sales price and costs cannot be accurately identified.

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Definitions:

Anticipation Response

The reaction or behavior that precedes and prepares for an expected stimulus or event.

Cutaneous Receptors

Sensory receptors found in the dermis or epidermis of the skin that respond to stimuli such as touch, temperature, and pain.

Endorphin

Naturally occurring peptides in the brain that act as neurotransmitters to reduce pain and elicit feelings of pleasure or euphoria.

Substance P

Substance P is a neuropeptide involved in the transmission of pain and other sensory signals to the central nervous system.