Which of the Following Is Not an Assumption of CVP

question 114

Multiple Choice

Which of the following is not an assumption of CVP analysis?

• A) Selling prices change only at the end of the month.
• B) Costs can be thought of as fitting a linear function within the relevant range.
• C) Sales mix is constant.
• D) Inventory levels do not change.

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Definitions:

Activities

Tasks or actions undertaken by individuals, usually referring to events involving movement, creativity, or social interaction.

Sales Contest

A competitive event designed to motivate sales personnel to increase their sales performance over a certain period.

Short-term Incentive

A reward system designed to motivate employees over a brief period, often meant to boost immediate performance or achieve specific short-term objectives.

Package Surprise

An unexpected benefit or gift included with a purchase, often used as a marketing strategy to enhance customer satisfaction and loyalty.