Maximizing revenue . Minimizing costs . Both revenue maximization and cost minimization . Achieving a desired level of sales and profits . Consistently producing sales above the breakeven level .
Question 7 . Question : The CVP profit-planning model assumes that over the relevant
range of activity : Student Answer : Only revenues are linear . Only revenues and fixed costs are linear . Only revenues and variable costs are linear . Variable cost per unit decreases because of increases in productivity . Both revenues and total costs are linear .
Question 8 . Question : The degree of operating leverage ( DOL ), at any sales volume , is
Maximizing revenue . Minimizing costs . Both revenue maximization and cost minimization . Achieving a desired level of sales and profits . Consistently producing sales above the breakeven level .
Question 7 . Question : The CVP profit-planning model assumes that over the relevant
range of activity : Student Answer : Only revenues are linear . Only revenues and fixed costs are linear . Only revenues and variable costs are linear . Variable cost per unit decreases because of increases in productivity . Both revenues and total costs are linear .
Question 8 . Question : The degree of operating leverage ( DOL ), at any sales volume , is