Which of the following assumptions does NOT pertain to cost-volume-profit analysis?
A)The units produced will equal the units sold.
B)Inventories are constant.
C)All costs are classified as fixed or variable.
D)Sales mix may vary during the related period.

Question

Quizplus · Accepted Answer

Sales mix may vary during the related period is a relevant assumption in cost-volume-profit analysis as it can affect the contribution margin ratio and break-even point. Therefore, the assumption that does NOT pertain to cost-volume-profit analysis is D.

Which of the Following Assumptions Does NOT Pertain to Cost-Volume-Profit