Which of the following is not a key assumption of cost-volume-profit?
A)Costs must be fixed.
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 assumption of cost-volume-profit analysis is that costs can be divided into fixed and variable components. It does not assume that all costs are fixed.

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