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

question 160

Multiple Choice

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

• A) The break-even point will be passed during the period.
• B) Total sales and total costs can be represented by straight lines.
• C) Costs can be accurately divided into fixed and variable components.
• D) The sales mix is constant.

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Definitions:

Contractual Obligation

A contractual obligation is a duty or responsibility recognized by law that arises out of a contract agreement between parties.

Breach Of Contract

The failure of one party to fulfill the terms agreed upon in a contract, potentially leading to legal action for remedies.

Negotiate

The process of discussing something to reach an agreement or compromise.

Additional Benefits

Supplemental compensations or perks provided by employers beyond basic salary, including health insurance, retirement plans, etc.