Which of the Following Underlying Assumptions Does Not Form the Basis

Multiple Choice

Which of the following underlying assumptions does not form the basis for cost-volume-profit analysis?

A) Revenues and costs behave in a linear manner.
B) Costs can be categorized as variable, fixed, or mixed.
C) Worker efficiency and productivity remain constant.
D) In multi-product organizations, the sales mix remains constant over the relevant range.
E) In manufacturing firms, the sales mix varies based on the prior year's budget.