Asked by shelby hulka on Apr 28, 2024
Verified
An important assumption in multiproduct CVP analysis is a changing sales mix.
Multiproduct CVP Analysis
A Cost-Volume-Profit analysis extension that assesses the profit impact of selling multiple products, considering their respective contribution margins and fixed costs.
Changing Sales Mix
Refers to alterations in the proportion of different products or services sold by a company, impacting revenue and costs.
- Comprehend the fundamentals of sales mix and its critical role in the context of CVP analysis.
Verified Answer
JK
Jeannine KocisMay 02, 2024
Final Answer :
False
Explanation :
In multiproduct CVP (Cost-Volume-Profit) analysis, it is typically assumed that the sales mix remains constant, not changing, as varying the mix complicates the analysis significantly.
Learning Objectives
- Comprehend the fundamentals of sales mix and its critical role in the context of CVP analysis.
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