33. Which of the following situations would most likely violate cost-volume-prof

Question

33. Which of the following situations would most likely violate cost-volume-profit assumptions about fixed costs? A) When production volume increases beyond the capacity of the plant, a second shift will be added instead of building a new plant. B) As volume decreases, per unit fixed manufacturing overhead remains constant. C) The company's raw material supplier typically allows volume discounts when larger amounts of the raw material are purchased. D) Fixed costs per unit decrease as volume increases.

Explanation / Answer

. B) As volume decreases, per unit fixed manufacturing overhead remains constant

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