Consider Graph (D)of Figure 1A

question 142

Multiple Choice

Consider graph (d) of Figure 1A.2.1.Which one of the following statements is true?

• A)x and y are negatively related.
• B)x and y are unrelated.
• C)x and y are positively related.
• D)x and y move in opposite directions.
• E)Both A and D are correct.

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Definitions:

Variable Costs

Variable costs are expenses that change in proportion with the level of output or activity in a business.

Fixed Selling Expenses

Costs that do not fluctuate with sales volume, such as salaries of sales staff and advertising expenses.

Flexible Budget Graph

A visual representation that shows different levels of revenue and expenses based on varying levels of activity.

Direct Labor Hours

The total time workers spend creating a product or providing a service, directly contributing to the finished goods.