Which of the following is not an underlying assumption of CVP analysis?

A) Changes in activity are the only factors that affect costs.
B) Cost classifications are reasonably accurate.
C) Beginning inventory is larger than ending inventory.
D) Sales mix is constant.

CVP Analysis

Cost-Volume-Profit Analysis; a management accounting tool that helps understand the relationship between costs, volume, and profit.

Inventory

Inventory consists of goods and materials held by a business for the purpose of resale or as part of the production process.