Cost-Volume-Profit Analysis Includes Some Inherent,simplifying Assumptions

question 10

Multiple Choice

Cost-volume-profit analysis includes some inherent,simplifying assumptions.Which of the following is not one of these assumptions?

• A)Cost and revenues are predictable and are linear over the relevant range.
• B)Variable costs fluctuate proportionally.
• C)Changes in beginning and ending inventory levels are insignificant in amount.
• D)Sales mix will change as fixed costs increase beyond the relevant range.

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Definitions:

Morality

Rules that help distinguish between morally acceptable and unacceptable actions, or between behavior that is beneficial and detrimental.

Trustworthiness

The quality of being reliable, honest, and dependable, inspiring confidence in others.

Homophobia

Is an excessive fear of homosexuals or homosexual behavior.

Homosexual Behavior

Sexual activities or behaviors between members of the same sex or gender.