Which of the following is not a key assumption of cost-volume-profit?
A)Costs may be fixed,variable,mixed,or step.
B)Production and sales are equal.
C)Changes in total cost are strictly due to changes in activity.
D)Total costs and revenues can be depicted with a straight line.

Question

Quizplus · Accepted Answer

The key assumptions of cost-volume-profit analysis include that costs are either fixed or variable, production and sales are equal, changes in total cost are due to changes in activity, and total costs and revenues can be depicted with a straight line. Mixed or step costs are not part of these assumptions.

Which of the Following Is Not a Key Assumption of Cost-Volume-Profit