Which of the Following Underlying Assumptions Form(s) the Basis for Cost-Volume-Profit

question 5

Multiple Choice

Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?

• A) Revenues and costs behave in a linear manner.
• B) Costs can be categorized as variable, fixed, or semivariable.
• C) Worker efficiency and productivity remain constant.
• D) In multiproduct organizations, the sales mix remains constant.
• E) All the other answers are assumptions that underlie cost-volume-profit analysis.

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Individual Productivity

The rate or efficiency at which an individual can produce outcomes or complete tasks, often in a work or academic setting.

Ordinary People

Refers to average individuals in society who are not distinguished by wealth, position, or special achievements.