Which of the following is true about the assumptions underlying basic CVP analysis?
A)Only selling price is known and constant.
B)Only selling price and variable cost per unit are known and constant.
C)Only selling price, variable cost per unit, and total fixed costs are known and constant.
D)Selling price, variable cost per unit, fixed cost per unit, and total fixed costs are known and constant.

Question

Quizplus · Accepted Answer

Basic CVP analysis assumes that only selling price, variable cost per unit, and total fixed costs are known and constant. It does not take into account fixed costs per unit or changes in these variables over time.

Which of the Following Is True About the Assumptions Underlying