Which of the following statements is most correct with respect to the assumptions of the cost volume profit model?
A) The assumptions of the model are realistic.
B) The assumptions of the model are unrealistic, and therefore the model has little usefulness.
C) It is not possible to state whether the assumptions of the model are realistic or unrealistic.
D) The assumptions of the model are unrealistic, but the model has great usefulness in certain circumstances, as evidenced by its use in practice.
Correct Answer:
Verified
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