With regard to the CVP graph, which of the following statements is not correct?
A) The CVP graph assumes that volume is the only factor affecting total cost.
B) The CVP graph assumes that selling prices do not change.
C) The CVP graph assumes that variable costs go down as volume goes up.
D) The CVP graph assumes that fixed costs are constant in total within the relevant range.

Question

Quizplus · Accepted Answer

The CVP graph assumes that variable costs per unit remain constant, not that they decrease as volume increases.

With Regard to the CVP Graph, Which of the Following