Which of the Following Is Not an Assumption of Cost-Volume-Profit

question 4

Multiple Choice

Which of the following is not an assumption of cost-volume-profit analysis?

• A) Costs can be classified into variable and fixed categories.
• B) The time value of money is incorporated into the analysis.
• C) The sales mix will remain constant.
• D) The behaviour of income and expenses is regarded as linear over the relevant range.

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Definitions:

B2B

Refers to business-to-business transactions, where one company provides products or services directly to another company.

Buying Systems

The organizational structures and processes through which companies purchase goods and services.

Committee

A group of individuals appointed to perform a specific task or to deliberate on a particular issue, often within a larger organization or assembly.

B2B

Business-to-Business, referring to transactions or strategies between two or more businesses rather than between businesses and individual consumers.