Question: Cost - volume - profit analysis includes some inherent, simplifying assumptions. Which of the following is not one of these assumptions? Variable costs fluctuate proportionally.
Costvolumeprofit analysis includes some inherent, simplifying assumptions. Which of the following is not one of these assumptions?
Variable costs fluctuate proportionally.
Sales mix will change as fixed costs increase beyond the relevant range.
Changes in beginning and ending inventory levels are insignificant in amount.
Cost and revenues are predictable and are linear over the relevant range.
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