CHAPTER 3 - CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS...

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CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS TRUE/FALSE 1. To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and variable components. Answer : True Difficulty : 1 Objective : 1 Terms to Learn: cost-volume-profit (CVP) analysis 2. Cost-volume-profit analysis may be used for multi-product analysis when the proportion of different products remains constant. Answer : True Difficulty : 1 Objective : 1 Terms to Learn: cost-volume-profit (CVP) analysis, sales mix 3. It is assumed in CVP analysis that the unit selling price, unit variable costs, and unit fixed costs are known and constant. Answer : False Difficulty : 2 Objective : 1 Terms to Learn: cost-volume-profit (CVP) analysis It is assumed in CVP analysis that the unit selling price, unit variable costs, and total fixed costs are known and constant. 4. In CVP analysis, the number of output units is the only revenue driver. Answer
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CHAPTER 3 - CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS...

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