Which of the Following Is an Assumption That Is NOT

question 46

Multiple Choice

Which of the following is an assumption that is NOT made in most cost-volume-profit calculations?

• A) Selling price, variable expense per unit, and fixed expense per unit do not change throughout the relevant range.
• B) There is no change in inventory levels.
• C) In a multiproduct company, the sales mix does not change.
• D) The selling price is constant.

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Definitions:

Merger

The combination of two or more companies into one, where one company survives and the others cease to exist, aiming to increase market share and efficiency.

Merger

The combination of two or more companies into a single entity, often with the goal of achieving synergies or efficiencies.

Consolidation

The process of combining multiple entities, assets, or financial statements into a single entity or set of financial statements.

Acquisition

The process by which one company takes over controlling interest in another company, which may involve purchasing assets or a majority of its stock.