Identify the Rule of Algebra Illustrated by the Statement

question 107

Multiple Choice

Identify the rule of algebra illustrated by the statement. 5p + 4p = (5 + 4) p

• A)associative property of addition
• B)commutative property of addition
• C)associative property of multiplication
• D)commutative property of multiplication
• E)distributive property

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Definitions:

Margin of Safety

The difference between actual or expected sales and the sales level necessary to break even; it measures how much sales can fall before a business incurs a loss.

Variable Costs

Charges that are aligned with the scale of production or the extent of activities in an enterprise.

Fixed Costs

Constant expenses that a business incurs regardless of production volume, including leases and insurance, essential for financial planning and analysis.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses.