Economics · CVP Analysis
The following statements have been made about cost-volume-profit (CVP) analysis: 1. CVP analysis uses an absorption costing approach. 2. CVP analysis assumes that variable cost per unit and selling price per unit are constant over the full range of production. 3. CVP can be used when multiple products are sold in a varying sales mix. 4. CVP analysis ignores the impact of changes in inventory. Which of the statements above are correct?
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2 and 4
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