An assumption of CVP analysis is that all costs can be classified as either variable or fixed.

Name: An assumption of CVP analysis is that all costs can be classified as either variable or fixed.
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CVP analysis assumes that all costs can be classified as either variable or fixed, and this assumption simplifies the analysis of cost behavior for decision-making purposes. However, in reality, some costs may have both variable and fixed components, while others may not fit neatly into either category.

An Assumption of CVP Analysis Is That All Costs Can