1. The relevant range are fixed costs for a range of volume but increase to a higher...
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1. The relevant range are fixed costs for a range of volume but increase to a higher level when the upper bound of the range is exceeded.
True
False
2. Account analysis is the most common approach to estimating fixed and variable costs.
True
False
3. The break-even point is not the number of units that must be sold for a company to break even.
True
False
4. The contribution margin is the difference between the expected level of sales and the variable costs of the level of sales.
True
False
5. In CVP the primary assumption is that costs can be separated into their mixed and variable components.
True
False
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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