Answer the following questions using the information below:
Northenscold Company sells several products. Information of average revenue and costs is as follows:

-All of the following are assumed in the above analysis EXCEPT:
A)a constant product mix
B)fixed costs increase when activity increases
C)cost and revenue relationships are reflected accurately
D)all costs can be classified as either fixed or variable

Question

Answer the following questions using the information below:
Northenscold Company sells several products. Information of average revenue and costs is as follows:
 
-All of the following are assumed in the above analysis EXCEPT:
A)a constant product mix 
B)fixed costs increase when activity increases 
C)cost and revenue relationships are reflected accurately 
D)all costs can be classified as either fixed or variable

Quizplus · Accepted Answer

The assumption that fixed costs increase when activity increases is not typically made in analyses, as fixed costs are generally assumed to remain constant regardless of activity level.

Answer the Following Questions Using the Information Below