Respuesta :
Inventory levels are never constant.
Costs are linear within the relevant range.
Finding out how changes in variable and fixed expenses impact a company's profit can be done using a cost-volume-profit (CVP) analysis.
Companies can utilize CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).
The assumptions that CVP makes, such as assuming the sales price and the fixed and variable cost per unit are constant, determine its dependability.
Within a predetermined level of output, the expenses are fixed. Assuming that every unit produced is sold, all fixed expenses must remain stable.
Another supposition is that changes in activity levels always result in changes in expenses. It is necessary to divide semi-variable expenses into expense categories using the high-low approach, scatter plot, or statistical regression.
To know more about variable cost, visit:
https://brainly.com/question/5965421
#SPJ4
