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The CVP Profit-Planning Model Assumes That Over the Relevant Range

Question 5

Multiple Choice

The CVP profit-planning model assumes that over the relevant range of activity:


A) Only revenues are linear.
B) Only revenues and fixed costs are linear.
C) Only revenues and variable costs are linear.
D) Variable cost per unit decreases because of increases in productivity.
E) Both revenues and total costs are linear.

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