Which of the following is incorrect related to CVP analysis.

CVP analysis Select one: a. assumes that fixed costs remain constant irrespective of the level of activity b. assumes that costs and revenues are linearly related c. classifies discretionary (eg. R&D costs) costs fixed d. assumes no costs related holding inventories e. assumes that unit level contribution margin is independent of level of activity

Please choose all relevant options.

Dual rate method seeks to mitigate

Select one or more:

a.

a chance to use more service center resources than planned, as the service center charge is fixed

b.

the incentive to overestimate service center resource use in order to manipulate budgeted service cost rate

c.

dependency of allocated service center cost of the behaviours of other divisions or cost centers

d.

self-interested decision-making in organisational subunits that is suboptimal for the firm

e.

inaccurate resource plans and estimates in service centers