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Which of the Following Is Not an Assumption Used to Prepare

Question 4

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Which of the following is not an assumption used to prepare a cost-volume-profit graph?


A) There are identifiable linear revenue and linear cost functions that remain constant over the relevant range.
B) Selling prices and costs are known with certainty.
C) The sales mix is known with certainty for multiple-product break-even settings.
D) Units produced always result in finished goods inventories.
E) ​None of these are assumptions is used in preparing cost-volume-profit graphs.

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