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.

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Definitions:

Interneurons

Nerve cells within the central nervous system that transmit impulses between sensory neurons and motor neurons.

Reflexes

Spontaneous and almost immediate reactions triggered by an external stimulus.

Excitatory Synapses

Connections between neurons that increase the likelihood of the receiving neuron to fire an action potential.

Inhibitory Synapses

Connections between neurons that decrease the likelihood of the receiving neuron firing, playing a key role in the modulation of neural circuits.