Busıness Fınance I Deneme Sınavı Sorusu #854477

Which of the following assumptions is the CVP based upon?

I.    The sales price per unit is constant
II.   Variable costs per unit and fixed costs are variable
III.  The firm sells all units produced
IV.   The cost structure is constant meaning that costs change only by the level of activity


I and II

I, II and IV

I, III and IV

III and IV

I and IV


Yanıt Açıklaması:

The CVP analysis is based upon the following assumptions:
1. The sales price per unit is constant,
2. Variable costs per unit and fixed costs are constant,
3. The firm sells all units produced,
4. The cost structure is constant meaning that costs change only by the level of activity,
5. If there is more than one product produced and sold, the sales mix of these products is constant.
6. Costs and revenues remain constant within a specified production level, which is usually called as the relevant range.

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