Question

Which of the following is not an assumption of cost-volume-profit analysis?

A. The time value of money is incorporated in the analysis.

B. Costs can be classified into variable and fixed components.

C. The behavior of revenues and expenses is accurately portrayed as linear over the relevant range.

D. The number of output units is the only driver.

Answer 1

The correct answer is option A

A. The time value of money is incorporated in the analysis.