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14. Which of the following situations will most likely violate cost-volume-profit assumptions about fixed costs? A) When production volume increases beyond the capacity of the
14. Which of the following situations will most likely violate cost-volume-profit
assumptions about fixed costs?
A) | When production volume increases beyond the capacity of the plant, a second shift will be added instead of building a new plant. |
B) | The companys raw material supplier typically allows volume discounts when larger amounts of the raw material are purchased. |
C) | Fixed costs per unit decrease as volume increases. |
D) | As volume increases, per unit fixed manufacturing overhead remain constant. |
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