Which of the following is NOT an assumption used to prepare a cost-volume-profit graph?
A)Linear costs are within the relevant range.
B)Units produced equals units sold.
C)The sales mix is constant.
D)The constant cost fluctuates.

Question

Quizplus · Accepted Answer

Assumptions used when preparing a cost-volume-profit graph include linear costs within the relevant range, units produced equaling units sold, and a constant sales mix. However, the assumption of a constant cost is necessary for creating a reliable cost-volume-profit graph. If the cost fluctuates constantly, it would be difficult to accurately predict the relationship between costs, volume, and profit.

Which of the Following Is NOT an Assumption Used to Prepare