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:

Articles of Organization

The legal document filed with a government body to formally establish a limited liability company (LLC).

Statutory Agent

An individual who is designated to receive service of process when a lawsuit is filed against a corporation or an LLC.

Shareholder Proposal

A recommendation or requirement submitted by a shareholder for consideration at a company's annual meeting.

Voting Stock

Voting stock refers to shares in a company that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.