Which of the following do limitations of cost volume profit include?
i.Not all costs can be classified as fixed or variable
ii.Revenue changes may not be linear.
iii.Sales volume is the only cost driver.iv.Inventory levels do not change.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis assumes that costs can be classified as fixed or variable, revenue changes are linear, sales volume is the only cost driver, and inventory levels remain constant. These assumptions are limitations because they may not hold true in real-world scenarios.

Which of the Following Do Limitations of Cost Volume Profit