Business A-Level
linearity assumption
What linearity assumption means in Business A-Level, as defined for AQA.
Definition of linearity assumption
Check what you remember
Read the wording for your board, then hide it and explain linearity assumption in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Revenue and costs are drawn as straight lines, so a bulk discount on materials and a markdown to shift the last few hundred units both vanish.
Topics that use linearity assumption
- Analysing financial performance (AQA A-Level)
Related terms
- break-even output
- cash flow forecast
- contribution per unit
- contribution squeeze
- credit terms
- data reliability
- forecast risk
- gross profit margin
Using linearity assumption in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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