which of the following is not an assumption of cost-volume-profit (CVP) analysis? a) The number of...
which of the following is not an assumption of
cost-volume-profit (CVP) analysis?
a) The number of units sold is the only revenue driver and the only
cost driver.
b) Total costs can be separated into two components.
c) When represented graphically, the behaviors of total revenues
and total cost are linear.
d) Selling price, variable cost per unit, and total fixed costs are
known and constant.
e) The total costs are never separate into components in this
analysis.
Homework Answers
| The total costs are never separate into components in this analysis is not an assumption of cost-volume-profit (CVP) analysis. | ||||||||||||
| Option E is correct | ||||||||||||
Add Answer to:
which of the following is not an assumption of
cost-volume-profit (CVP) analysis?
a) The number of...
Which one of the following is not an assumption of CVP analysis?
Which one of the following is not an assumption of CVP analysis? Profit for the period is constant. The sales mix is constant. Costs can be classified as variable or fixed. Volume or level of activity affects costs.
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized...
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized the interrelationships of costs, quantity sold, and price. This analysis is defined as assessment of total revenues, total costs and operating income in response to changes in the volume of sales, the selling price, variable cost or fixed costs of production. The CVP analysis can be a valuable tool in identifying the extent and magnitude of the economic trouble a company is facing and...
One assumption of CVP (cost-volume-profit) analysis is that changes in activity are not the only factors...
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Which one of the following is not an assumption of cost-volume-profit analysis? The behavior of costs...
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