One of the Major Assumptions Used in CVP Analysis Is

question 34

Multiple Choice

One of the major assumptions used in CVP analysis is:

• A) that number of units sold each year remains the same.
• B) that in a multi-product environment, all products are assumed to be sold in identical proportion to total sales.
• C) that the tax rate is not known.
• D) that the sales price of a product will not change as volume changes.

---

Definitions:

Music Downloads

The process of transferring music files from the internet to a computer or mobile device for offline listening.

Online Movie Streaming

The practice of delivering movies over the Internet for viewing on various devices without the need for downloading.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, while keeping consumption of other products constant, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.

Baseball Card Packs

Packaged collections of trading cards primarily featuring baseball players, often sold as collectibles or hobby items.