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Tutor can you explain the assumption of CVP analysis that “Company will hold no stocks which means productions will equal to sales”.
What was the reason for assumption? I have studied that assumptions are put when there is a restriction to use like here if we remove assumption so CVP should not work. But I cannot figure such effect.
I hope I am able to explain my question.
Thank you.This forum is primarily designed for students to help one another. If you want to ask the tutor something directly, please use the ask the tutor forum-
Hope this helps.
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