# “CVP analysis is both simple and simplistic. If you want realistic analysis to underpin your decisions, look beyond CVP analysis.” Do you agree? Explain.

“CVP analysis is both simple and simplistic. If you want realistic analysis to underpin your decisions, look beyond CVP analysis.” Do you agree? Explain.
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pattererX
The CVP analysis is limited by the assumptions mentioned in the question 2 of this chapter and that makes it simplistic. One of the assumptions is that: costs will either fall under variable or fixed costs, but in reality some costs will be mixed. It also says that variable and fixed costs are known and constant which also in reality will not always be the case. Sometimes variable costs wont