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:

Quality

The degree to which a product or service meets or exceeds customer expectations in terms of reliability, design, functionality, durability, and satisfaction.

Long-Term Customer Relationships

The development and maintenance of enduring relationships between a business and its customers, leading to repeat business and loyalty.

Types of Utility

The different ways in which goods or services can provide value to consumers, including form, time, place, and possession utility.

Ideal Expectation

The highest or most perfect level of expectation that consumers hold regarding a product or service and its performance.