Which of the following are assumptions of cost volume profit analysis?
i.Sales mix is constant
ii.External factors do not change.
iii.Fixed costs change with sales volume.iv.Variable costs are constant per unit of sales.

Question

Quizplus · Accepted Answer

Assumptions of cost volume profit analysis include that sales mix is constant, external factors do not change, and variable costs are constant per unit of sales. The assumption that fixed costs change with sales volume is not valid as fixed costs remain constant regardless of sales volume. Therefore, option C is the best choice as it correctly identifies the assumptions of cost volume profit analysis.

Which of the Following Are Assumptions of Cost Volume Profit