Question

Locational cost-profit-volume analysis assumes: I. nonlinear variable costs. II. fixed costs that are constant over the range of possible output. III. accurate estimates regarding the required level of output. IV. multiple products. I, III, and IV only I, II, III, and IV II and III only I, II, and III only II, III, and IV only

Answer 1

Answer:

Only II and III

Explanation:

II. fixed costs that are constant over the range of possible output.

III. accurate estimates regarding the required level of output.

In Locational cost-profit-volume analysis, only one product is involved and variable cost are linear over a range of possible output.