Multiple Choice
Which of the following statements regarding cost-volume-profit analysis is incorrect?
A) Cost-volume-profit analysis assumes that fixed cost per unit is constant.
B) Cost-volume-profit analysis assumes that the selling price cost per unit is constant.
C) An increase in inventory during a period will affect cost-volume-profit relationships.
D) Although cost-volume-profit analysis is based on assumptions that seldom will be perfectly achieved, the technique is still useful to managers.
Correct Answer:
Verified
Correct Answer:
Verified
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