Cost Volume Profit Analysis Is Based on Certain General Assumptions

question 100

Multiple Choice

Cost volume profit analysis is based on certain general assumptions. Which of the following statements about these assumptions is/are true?

• A) The price of the product will remain constant as volume varies within the relevant range.
• B) Expenses can be categorised as fixed, variable or semivariable.
• C) Total fixed costs remain constant and unit variable cost remains unchanged as activity varies.
• D) All of the given answers

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Definitions:

Spring Flexes

The action of spring materials bending or flexing under load, a property utilized in suspension systems to absorb shocks.

Reversible Sleeve

A garment or machinery component designed to be used in either direction, enabling versatility or reversible functionality.

Air Spring

A device using contained air under pressure to support a weight or absorb shock, often used in vehicle suspension systems.

Jounce Block

A component of a vehicle's suspension system designed to limit suspension travel and prevent metal-to-metal contact during extreme compression.