Which of the following statements relating to CVP assumptions is not true?
A) CVP analysis is not well suited for a setting in which available capacity is not sufficient to meet al demand.
B) CVP analysis does not always provide the best solution to short term decisions.
C) Fixed costs increase proportionately with sales volume.
D) Selling prices and costs are known with certainty.
E) All of the above statements are true.
Correct Answer:
Verified
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