The fundamental assumption of cost-volume-profit (CVP)analysis is that,in the long run,fixed costs become variable costs.

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The fundamental assumption of CVP analysis is actually that within the relevant range, total costs can be divided into a fixed component and a variable component. This means that fixed costs remain fixed within the relevant range and do not become variable costs.

The Fundamental Assumption of Cost-Volume-Profit (CVP)analysis Is That,in the Long