Which of the following is an assumption of cost-volume-profit (CVP)analysis?
A) the price per unit does not change as volume changes
B) mangers classify all costs as mixed
C) total fixed costs change in the relevant range
D) the number of products produced exceeds the number of products sold

Question

Quizplus · Accepted Answer

CVP analysis assumes that the price per unit remains constant regardless of changes in volume.

Answer: C 
 CVP analysis assumes that total fixed costs remain constant within the relevant range of production or sales.

Answer: D 
 This statement is not an assumption of CVP analysis.

Which of the Following Is an Assumption of Cost-Volume-Profit (CVP)analysis