Cost Volume Profit (CVP) analysis assumes that all costs can be classified as either variable or fixed.

At the break-even point, total revenue is greater than total costs, resulting in a profit.

Variable costs per unit do not change as production volume changes.

Fixed costs change proportionally with the level of production output.

The contribution margin per unit is calculated by subtracting the fixed costs per unit from the selling price per unit.

In a multi-product company, the sales mix has no effect on the overall Cost Volume Profit (CVP) analysis.

Cost Volume Profit (CVP) analysis is primarily useful as a short-term decision-making tool.

Cost-volume-profit relationships remains constant regardless of variations in the product mix.

Cost Volume Profit (CVP) analysis assumes that all units produced are sold within the period under consideration.

One of the assumptions in traditional Cost Volume Profit (CVP) analysis is that the productivity level is constant over the relevant range.

Break Even Analysis is often a component of a Cost Volume Profit (CVP) analysis.

Fixed costs remain constant in total over the relevant range of activity