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95. The main consequence of relaxing the assumption of linear cost-volume relationships is (Hint: sketch...

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Finance

95. The main consequence of relaxing the assumption of linear cost-volume relationships is (Hint: sketch the usual CVP model but make the total variable cost curve non-linear, e.g. quadratic or U-shaped)

A. the possibility of multiple break-even points

B. that expenses can no longer be categorised as fixed, variable or semivariable

C. that the assumption that sales and production volumes are equal is no longer tenable

D. the assumption of a constant sales mix for multiproduct firms is no longer tenable

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