Which of the Following Is Not an Assumption Made When

question 75

Multiple Choice

Which of the following is not an assumption made when performing cost-volume-profit analysis?

• A) Number of units produced is greater than the number of units sold.
• B) Worker efficiency is held constant.
• C) The company produces within the relevant range of activity.
• D) There is a linear relationship between cost and volume for both fixed and variable cost.

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Definitions:

Risky Shift

The phenomenon where a group collectively decides on a course of action that is more extreme than they would have decided individually.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members following group discussion.

Political Organization

A political organization refers to a group structured to promote, pursue, and achieve political objectives and ideologies.

Groupthink

a psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.