Which of the following is not an assumption in CVP analysis?
A) Actual costs will be exactly the amount that we predict in the analysis
B) Operations are within the relevant range
C) The revenue function is linear
D) The cost function is linear

Question

Quizplus · Accepted Answer

Actual costs could be different from the predicted costs in CVP analysis due to various factors such as inflation, unexpected events, and fluctuations in the market.

Which of the Following Is Not an Assumption in CVP