Which of the Following Assumptions Is Made When Doing a Cost

question 34

Multiple Choice

Which of the following assumptions is made when doing a cost volume profit analysis based on activity-based costing?

• A) Sales volume equals production volume.
• B) As production volume changes, the number of set-ups, inspections, material moves etc. does not change.
• C) The purchase price of raw materials per unit remains constant.
• D) Sales volume equals production volume AND the purchase price of raw materials per unit remains constant.

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