CVP Analysis Is Based on a Number of Assumptions

question 37

Multiple Choice

CVP analysis is based on a number of assumptions. Which of the following is not one of those assumptions?

• A) Fixed costs remain constant over the relevant range
• B) There are no mixed costs
• C) Variable costs change proportionately with volume
• D) Efficiency remains relatively unchanged

---

Definitions:

Heritability Coefficient

A statistical estimate that indicates how much of a trait's variation in a population is due to genetic differences among individuals.

Phobias

Irrational fears of specific objects, activities, or situations that lead to avoidance behavior.

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, leading to significant impairment or distress.

Extraversion

A personality trait characterized by sociability, talkativeness, and a tendency to seek stimulation in the company of others.