Which of the Following Are Underlying Assumptions of Cost-Volume-Profit Analysis

question 41

Multiple Choice

Which of the following are underlying assumptions of cost-volume-profit analysis?

• A)Fixed costs will not change over a wide range of activity and variable costs are strictly variable.
• B)All costs can be classified either as a fixed or variable cost and behave linearly.
• C)Sales prices do not change in the relevant range and the sales mix must remain constant.
• D)All of the answers are correct.

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Definitions:

Left Ventricle

The chamber within the heart that pumps oxygenated blood out into the systemic circulation throughout the body.

Nervous System

A complex network of nerves and cells that transmits signals between different parts of the body.

Heart Rate

The number of heartbeats per unit of time, typically expressed in beats per minute (BPM), indicating cardiovascular health and overall physical fitness.

Capillary

A small blood vessel that connects arterioles and venules, facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste chemical substances between blood and surrounding tissues.