Cost-Volume-Profit analysis is based on several assumptions. Which one of the following is not one of these assumptions —

CS Executive · Cost and Management Accounting · PYQS · June 2016
Cost-Volume-Profit analysis is based on several assumptions. Which one of the following is not one of these assumptions —
(A) Sales mix of the products is constant
(B) The behaviour of both sales and variable cost is linear throughout the relevant range
(C) Variable cost per unit will remain constant
(D) Productivity and operational efficiency will change according to output.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Marginal Costing

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