CVP Analysis Relies on the Assumptions That Costs Are Either

question 19

Multiple Choice

CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable.Consistent with these assumptions,as volume decreases total

• A)fixed costs decrease.
• B)variable costs remain constant.
• C)costs decrease.
• D)costs remain constant.

Evaluate the role of computers and technology in productivity growth.

Distinguish between basic research and applied research and their impact on productivity.

Recognize the effects of small changes in productivity growth rates over time.

Understand the implication of labor productivity growth on real GDP per capita.

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Definitions:

Closing Entries

Entries recorded at the closing of an accounting cycle to shift balances from temporary to permanent accounts, readying the accounts for the upcoming period.

Post-Closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, serving to check the balance of debits and credits.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to reflect accrued incomes and expenses for the period.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business resources.