All of the following are assumed in the above analysis EXCEPT:
A)a constant product mix.
B)cost and revenue relationships are reflected accurately.
C)per unit variable costs increase when activity increases.
D)all costs can be classified as either fixed or variable.

Question

Quizplus · Accepted Answer

The assumption in cost-volume-profit (CVP) analysis is that per unit variable costs remain constant as activity levels change, not increase. Choices A, B, and D are typical assumptions made in CVP analysis.

All of the Following Are Assumed in the Above Analysis