Which of the following is an assumption underlying standard CVP analysis?

A) In multiproduct companies, the sales mix is constant.
B) In manufacturing companies, inventories always change.
C) The price of a product or service is expected to change as volume changes.
D) Fixed expenses will change as volume increases.

CVP Analysis

Cost-Volume-Profit Analysis, a business management tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Mix

refers to the composition of different products or services sold, impacting overall sales and profitability.

Fixed Expenses

These are expenses that remain constant regardless of the amount of goods produced or sold, including items like rent, wages, and insurance premiums.