Which of the Following Is Not a Major Assumption Underlying

question 74

Multiple Choice

Which of the following is not a major assumption underlying CVP analysis?

• A)All costs incurred by a firm can be separated into their fixed and variable components.
• B)The product selling price per unit is constant at all volume levels.
• C)Operating efficiency and employees productivity are constant at all volume levels.
• D)For multiproduct situations,the sales mix can vary at all volume levels.

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Definitions:

Foot-In-The-Door Effect

A persuasion technique that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Foot-In-The-Door Technique

A persuasion strategy where compliance with a small request is followed by a larger request, leveraging the principle of consistency to increase the likelihood of agreement to the second request.

Telemarketer

An individual who markets goods or services to potential customers over the telephone.

Pitch

Psychological experience of sound that corresponds to the frequency of the sound waves; higher frequencies are perceived as higher pitches.