Asked by Samantha Valadez on Jul 03, 2024
Verified
Three important assumptions in cost-volume-profit analysis are that (1)________ per unit is constant,(2)________ per unit is constant,and (3)________ are constant in total.
Sales Volume
Sales volume refers to the number of units of a product sold over a specific period, serving as a measure of business activity and market demand for the product.
Unit Price
The cost of a single item or unit of measure for goods or services, facilitating comparison of costs among similar items.
Fixed Costs
Costs that do not change with the level of production or sales activity, such as rent or salaries.
- Investigate the interconnections among cost, volume, and profit to resolve issues in business.
- Explain and identify the characteristics of fixed, variable, semi-variable, and step costs.
Verified Answer
The first and second answers are interchangeable.The third answer must appear as shown.
Learning Objectives
- Investigate the interconnections among cost, volume, and profit to resolve issues in business.
- Explain and identify the characteristics of fixed, variable, semi-variable, and step costs.
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