Which of the following is true about the assumptions underlying basic CVP analysis?
A)Only selling price is known and constant.
B)Only selling price and variable cost per unit are known and constant.
C)Selling price,variable cost per unit,fixed cost per unit,and total fixed costs are known and constant.
D)Only selling price,variable cost per unit,and total fixed costs are known and constant.

Question

Quizplus · Accepted Answer

CVP analysis assumes that selling price, variable cost per unit, and total fixed costs are known and remain constant over the relevant range. It does not assume fixed costs per unit, as fixed costs do not change per unit produced/sold.

Which of the Following Is True About the Assumptions Underlying