Which one of the following is a consideration of CVP analysis?
A)The level of activity must remain constant over the relevant range.
B)Total fixed costs remain constant over the relevant range.
C)Total variable costs remain constant over the relevant range.
D)Cost behaviour can change as long as total costs remain the same at all activity levels.

Question

Quizplus · Accepted Answer

CVP analysis assumes that total fixed costs remain constant over the relevant range.

Which One of the Following Is a Consideration of CVP