Cost-volume-profit analysis assumes that total costs behave in a curvilinear fashion.Cost-volume-profit analysis assumes that total costs behave in a linear fashion.

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Cost-volume-profit analysis assumes that total costs behave in a linear fashion, not a curvilinear fashion. This means that the relationship between costs and the level of sales or production is constant and predictable, allowing businesses to make informed decisions about pricing, production levels, and overall profitability. However, it is important to note that this assumption may not hold true in all cases, particularly when there are changes in the business environment or other factors that can impact costs.

Cost-Volume-Profit Analysis Assumes That Total Costs Behave in a Curvilinear