Which of the following assumptions might negatively affect the validity of a CVP analysis?
A) Costs can be accurately separated into fixed and variable components.
B) Fixed costs remain fixed, and variable costs per unit do not change over the activity levels of interest.
C) Both the assumptions-costs can be accurately separated into fixed and variable components, and fixed costs remain fixed, and variable costs per unit do not change over the activity levels of interest-negatively affect the validity of a CVP analysis.
D) None of these answer choices are correct.
Correct Answer:
Verified
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