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An axiom, postulate, or assumption is a statement that is taken to be true, to serve as a premise or starting point for further reasoning and arguments. The word comes from the Ancient Greek word ἀξίωμα ( axíōma ), meaning 'that which is thought worthy or fit' or 'that which commends itself as evident'.
CVP analysis employs the same basic assumptions as in breakeven analysis. The assumptions underlying CVP analysis are: The behavior of both costs and revenues is linear throughout the relevant range of activity. (This assumption precludes the concept of volume discounts on either purchased materials or sales.)
In philosophy and science, a first principle is a basic proposition or assumption that cannot be deduced from any other proposition or assumption. First principles in philosophy are from first cause [1] attitudes and taught by Aristotelians, and nuanced versions of first principles are referred to as postulates by Kantians.
There are basic assumptions, derived from philosophy by at least one prominent scientist, [D] [157] that form the base of the scientific method – namely, that reality is objective and consistent, that humans have the capacity to perceive reality accurately, and that rational explanations exist for elements of the real world. [157]
Statistical assumptions can be put into two classes, depending upon which approach to inference is used. Model-based assumptions. These include the following three types: Distributional assumptions. Where a statistical model involves terms relating to random errors, assumptions may be made about the probability distribution of these errors. [5]
The expected utility hypothesis is a foundational assumption in mathematical economics concerning decision making under uncertainty.It postulates that rational agents maximize utility, meaning the subjective desirability of their actions.
The strategic assumptions surfacing and testing method is one rigorous method of identifying strategic assumptions. Like other types of assumptions, strategic assumptions are the assumptions held by decision-makers about different types of factors and drivers of change that have influenced their thinking, decision-making or planning.
The stable measuring unit assumption (traditional Historical Cost Accounting) during annual inflation of 26% for 3 years in a row would erode 100% of the real value of all constant real value non-monetary items not maintained under the Historical Cost paradigm. B. Under Constant Purchasing Power Accounting the underlying assumptions in IFRS are: