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Because Fixed Costs Generally Do Not Change in the Short

Question 40

Multiple Choice

Because fixed costs generally do not change in the short term:


A) CVP is not appropriate if fixed costs are low.
B) They are generally not included as a component in CVP analysis.
C) Decreasing contribution margin increases profit by an identical amount.
D) Increasing contribution margin increases profit by an identical amount.
E) None of the above.

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