Which of the following assumptions is made when doing a cost volume profit analysis based on activity-based costing?
A) Sales volume equals production volume.
B) As production volume changes, the number of set-ups, inspections, material moves etc. does not change.
C) The purchase price of raw materials per unit remains constant.
D) Sales volume equals production volume AND the purchase price of raw materials per unit remains constant.
Correct Answer:
Verified
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