One assumption made when using CVP as a decision tool is that all costs can be easily and accurately separated into fixed and variable categories.

Name: One assumption made when using CVP as a decision tool is that all costs can be easily and accurately separated into fixed and variable categories.
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Cost-Volume-Profit (CVP) analysis assumes that all costs can be classified into fixed and variable categories for simplicity and accuracy in predicting how changes in volume affect costs and profitability.

One Assumption Made When Using CVP as a Decision Tool