Which of the Following Situations Would Be Most Likely to Violate

Multiple Choice

Which of the following situations would be most likely to violate cost-volume-profit assumptions about variable costs?

A) As volume doubles, direct labour costs also double.
B) As volume decreases, per-unit material costs remain constant.
C) The company's raw material supplier typically allows volume discounts when larger amounts of the raw material are purchased.
D) Fixed costs per unit decrease as volume increases.