All of the following are assumptions of cost-volume-profit analysis except:
A) Total fixed costs do not change with a change in volume.
B) Revenues change proportionately with volume.
C) Variable costs per unit change proportionately with volume.
D) Sales mix for multiproduct situations do not vary with volume changes.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis assumes that variable costs do not change with a change in volume; therefore, option C is the correct response. All other assumptions presented are correct.

All of the Following Are Assumptions of Cost-Volume-Profit Analysis Except