Which of these is not an assumption of cost-volume-profit analysis?
A) The behaviour of income and expenses is regarded as linear over the relevant range.
B) Costs can be classified into variable and fixed categories.
C) The time value of money is incorporated into the analysis.
D) The sales mix will remain constant.
Correct Answer:
Verified
Q28: If the targeted sales are 12 000
Q29: The break-even point is the level of
Q30: Contribution margin is:
A) sales less cost of
Q31: The term a in the cost equation
Q32: Contribution margin is:
A) sales less cost of
Q34: When fixed costs are $24 000 and
Q35: Which question can cost-volume-profit analysis not assist
Q36: The formula for break-even point sales in
Q37: In a cost-volume-profit graph the break-even point
Q38: The vertical axis of the cost-volume-profit chart
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