Knowing the Behavior Pattern of a Cost Is Important to Determine

question 62

Multiple Choice

Knowing the behavior pattern of a cost is important to determine the effect on net income of a change in sales volume because as sales volume increases or decreases:

• A)net income will change proportionately.
• B)the effect on net income will depend on the behavior pattern of various costs.
• C)fixed costs will rise proportionately.
• D)variable costs will not change.

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Definitions:

Applied Voltage

The voltage that is externally applied to an electrical component or circuit.

Total Current

The combined current that flows in an electrical circuit, which, in parallel circuits, is the sum of the individual currents through each component.

RLC Parallel Circuit

A circuit consisting of a resistor (R), an inductor (L), and a capacitor (C) connected in parallel.

Applied Voltage

The external voltage that is applied to an electrical device or circuit, which drives the current flow through it.