Locational cost-profit-volume analysis assumes
(I)nonlinear variable costs.(II)fixed costs that are constant over the range of possible output.(III)accurate estimates regarding the required level of output.(IV)multiple products.
A)I, III, and IV only
B)II and III only
C)I, II, and III only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Locational cost-profit-volume analysis typically assumes fixed costs that are constant over the range of possible output and requires accurate estimates regarding the required level of output. It does not inherently assume nonlinear variable costs or the production of multiple products.

Locational Cost-Profit-Volume Analysis Assumes