CVP Analysis Assumes All of the Following Except That

question 1

Multiple Choice

CVP analysis assumes all of the following except that

• A) a change in volume is the only factor that affect costs.
• B) inventory levels will increase.
• C) revenues are linear throughout the relevant range.
• D) the mix of products will not change.

---

Definitions:

Gloves

Hand-worn garments intended to protect the hands from various conditions such as cold, heat, damage, or contamination.

Optimal Choice Point

In decision theory and economics, the point at which the decision maker achieves the best possible outcome under given constraints.

Budget Constraint

The limitations on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Indifference Curve

A graph showing combinations of goods among which a consumer is indifferent, meaning they give the consumer the same level of satisfaction.