A Cost with a Flat Cost Line Within a Relevant

question 68

Multiple Choice

A cost with a flat cost line within a relevant range that shifts to another level when volume significantly changes is a(n) :

• A)Step-wise cost.
• B)Fixed cost.
• C)Curvilinear cost.
• D)Incremental cost.
• E)Flat line cost.

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Definitions:

Withdrawal Account

An account from which funds can be withdrawn by the account holder; in the context of business partnerships, it refers to an account used by an owner or partner to draw funds from the business.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the net income to retained earnings.

General Ledger

A complete record of all financial transactions over the life of a company, organized into debits and credits across various accounts.

Capital Account

An account showing the net changes in property ownership and transfer of payment among countries for international transactions, or in a company's context, represents the stake of owners in the firm.