Due to the number of assumptions and limitations that CVP analysis is subject to, care should be taken when interpreting the results.

Name: Due to the number of assumptions and limitations that CVP analysis is subject to, care should be taken when interpreting the results.
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Quizplus · Accepted Answer

CVP (Cost-Volume-Profit) analysis relies on several assumptions, such as constant variable costs per unit and fixed costs, which may not hold true in all situations, making careful interpretation of its results essential.

Due to the Number of Assumptions and Limitations That CVP