Which of the Following Is Not an Underlying Assumption of Cost-Volume-Profit

question 101

Multiple Choice

Which of the following is not an underlying assumption of cost-volume-profit analysis?

• A)Fixed costs will not change over a wide range of activity.
• B)All costs behave linearly.
• C)Sales prices change in the relevant range.
• D)Sales mix must remain constant.

---

Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous in consumption, meaning they can be consumed by everyone and one person's consumption does not reduce the availability for others.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, as opposed to being owned by the government.

External Benefit

A positive effect or advantage that extends beyond the direct participants of an economic transaction to affect others who are not involved in the transaction.

First-Chair Violinist

The lead violinist in a symphony orchestra, often responsible for playing solos and leading the violin section.