In CVP analysis,
A)an assumption that all costs can be classified as either variable or fixed.
B)the term 'cost' includes only manufacturing costs.
C)one assumption is that costs must be classified as either fixed, mixed, or variable.
D)an assumption is that when one more than one type of product is sold, the sales mix will vary.

Question

Quizplus · Accepted Answer

CVP analysis assumes that all costs can be classified as either variable or fixed, which simplifies the analysis by not considering mixed costs.

In CVP Analysis