Cost-Volume-Profit Analysis Is Based on Necessary Assumptions

question 82

Multiple Choice

Cost-volume-profit analysis is based on necessary assumptions.Which of the following is not one of these assumptions?

• A)Costs can be classified as variable or fixed.
• B)Relevant range includes all possible levels of activity that a company might experience.
• C)Sales price and variable costs per unit of output remain constant as volume changes.
• D)A constant sales mix in a multiproduct company.
• E)Total fixed costs are held constant.

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Definitions:

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An American professional baseball catcher, who was known for his humorous and paradoxical quotes.

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A value or trait characterized by a strong desire for autonomy and self-determination in one's actions and choices.

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The act of making a judgment that your adversary or competitor is less capable or determined than they actually are.

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A situation where an attempt to achieve a result leads to the opposite effect, often worsening the situation.