Which of the following is NOT an assumption that must be true in order for CVP analysis to provide reliable information for decision making? In multiproduct companies, the contribution margin must be the same for all products. Costs can be separated between variable and fixed components with reasonable accuracy. Inventories remain constant. The number of units produced is the same as the number sold. Selling prices of the various products remain constant. Solution The first option is the answer, i.e., the assumption that \"in multiproduct companies, the contribution margin must be the same for all products\" is a wrong. .

1. Which of the following is NOT an assumption that must be true in order for CVP analysis to
provide reliable information for decision making?
In multiproduct companies, the contribution margin must be the same for all products.
Costs can be separated between variable and fixed components with reasonable accuracy.
Inventories remain constant. The number of units produced is the same as the number sold.
Selling prices of the various products remain constant.
In multiproduct companies, the contribution margin must be the same for all products.
Costs can be separated between variable and fixed components with reasonable accuracy.
Inventories remain constant. The number of units produced is the same as the number sold.
Selling prices of the various products remain constant.
Solution
The first option is the answer, i.e., the assumption that "in multiproduct companies, the
contribution margin must be the same for all products" is a wrong.