Which of the Following Is True of CVP Analysis

question 157

Multiple Choice

Which of the following is true of CVP analysis?

• A) Costs may be separated into separate inventoriable and period components with respect to the level of output.
• B) Total revenues and total costs are linear in relation to output units.
• C) Unit selling price, unit variable costs, and unit fixed costs are known and remain constant.
• D) Proportion of different products will vary according to demand and supply when multiple products are sold.

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Definitions:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Spontaneous Recovery

A phenomenon in psychology where previously extinguished responses re-emerge after a pause without further conditioning.

Lab Experiment

A research study conducted in a controlled environment where variables can be manipulated to observe their effect on various outcomes.