For CVP analysis both variable and fixed costs are assumed to have a linear relationship within the relevant range of activity.

Name: For CVP analysis both variable and fixed costs are assumed to have a linear relationship within the relevant range of activity.
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CVP analysis assumes that both variable and fixed costs have a linear relationship within the relevant range of activity, meaning that the total cost will increase proportionately with the level of activity or sales volume.

For CVP Analysis Both Variable and Fixed Costs Are Assumed