Which of the Following Is an Assumption of CVP Analysis

question 116

Multiple Choice

Which of the following is an assumption of CVP analysis?

• A) Total costs can be divided into a fixed component and a component that is variable with respect to the level of output.
• B) When graphed, total costs curve upward.
• C) The unit-selling price is variable as it is subject to demand and supply.
• D) Total costs can be divided into inventoriable and period costs with respect to the level of output.

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Definitions:

Local Environment

The specific surroundings or conditions in which a person, plant, or animal lives or operates.

Restriction

The limitation or control of someone or something, or the action of such limitation.

Community Ecology

The description and analysis of patterns and processes within the community.

Biological Community

An assemblage of different species living in the same area, which interact with each other.