- All costs can be resolved into fixed and variable elements.
- Semi-variable cost can be segregated into both the variable and its fixed components.
- Selling price per unit is constant.
- Variable cost per unit is constant.
- Total fixed cost remain unchanged regardless of output.
- Only one product is involved and in case of a multi-product organization, there is a constant sales mix.
- The only factor affecting costs and revenues is volume
- Over the activity range being considered costs and revenues behave in a linear fashion
- Risk and uncertainty are non-existent
- There is a relevant range.
(Visited 1 times, 1 visits today)
Share this:
