Which of the following is not an underlying assumption of cost-volume-profit analysis?
A)Fixed costs will not change over a wide range of activity.
B)All costs behave linearly.
C)Sales prices change in the relevant range.
D)Sales mix must remain constant.

Question

Quizplus · Accepted Answer

Cost-volume-profit (CVP) analysis assumes that sales prices, fixed costs, and variable cost per unit remain constant within the relevant range, not that sales prices change.

Which of the Following Is Not an Underlying Assumption of Cost-Volume-Profit