All of the following are assumed in a cost-volume-profit analysis EXCEPT:
A)a constant product mix.
B)fixed costs increase when activity increases.
C)revenue per unit does not change as volume changes.
D)all costs can be classified as either fixed or variable.

Question

Quizplus · Accepted Answer

In a cost-volume-profit analysis, it is assumed that fixed costs remain constant regardless of changes in activity level. Therefore, option B is not assumed in a cost-volume-profit analysis. Choices A, C, and D are all assumed in a cost-volume-profit analysis.

All of the Following Are Assumed in a Cost-Volume-Profit Analysis