Assumptions and Use of Variables Choose the best answer for each of the following multiple-choice questions. 1. Cost-volume-profit analysis includes some simplifying assumptions. Which of the following is not one of these assumptions? a. Cost and revenues are predictable. b. Cost and revenues are linear over the relevant range. c. Changes in beginning and ending inventory levels are insignificant in amount. d. Sales mix changes are irrelevant. The correct answer is 2. The term relevant range, as used in cost accounting, means the range a. over which costs may fluctuate b. over which cost relationships are valid c. of probable production d. over which production has occurred in the past 10 years The correct answer is 3. How would the following be used in calculating the number of units that must be sold to earn a targeted operating income?