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Which of the Following Does Not Affect the Equity of a Business

question 111

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Which of the following does not affect the equity of a business?


Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments, wages, and coverage fees.

Selling Price

The amount for which a good or service is sold, determining the revenue generated from sales activities.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance expenses.

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