Which one of the following is not an assumption of CVP analysis?
A) All units produced are sold.
B) All costs are variable costs.
C) Sales mix remains constant.
D) The behavior of costs and revenues are linear within the relevant range.

Question

Quizplus · Accepted Answer

CVP analysis assumes that costs can be classified as either variable or fixed. It does not assume that all costs are variable costs.

Which One of the Following Is Not an Assumption of CVP