Cost-volume-profit analysis includes all of the following assumptions except

Discipline: Accounting

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 1 Words: 275

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Question

Question: Cost-volume-profit analysis includes all of the following assumptions except A. The behavior of costs is curvilinear throughout the relevant range. B. All costs can

Cost-volume-profit analysis includes all of the following assumptions except

A.	The behavior of costs is curvilinear throughout the relevant range.

B.	All costs can be classified as either variable or fixed.

C.	Changes in activity are the only factors that affect costs.

All units produced are sold.

Expert Answer

Cost-volume-profit analysis includes the following assumptions:

• Costs can be classified accurately as either variable or fixed.

• All units produced are sold.

• Changes in activity are the only factors that affect costs.

The behavior of costs is curvilinear throughout the relevant range is not an assumption of Cost-volume-profit analysis.

Please select the following option:

The behavior of costs is curvilinear throughout the relevant range.