A Cost That Increases or Decreases Only in Response to More

question 49

True/False

A cost that increases or decreases only in response to more than a unit change in the activity level is known as a step-variable cost.

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Definitions:

Journal Entry

A record in accounting that represents a transaction, documenting the debit and credits affected by it.

Debit

A bookkeeping record that elevates the value of an asset or expense account, or reduces the value of a liability or equity account.

Credit

A bookkeeping entry that increases the balance of a liability, equity account, or revenue, or decreases the balance of an asset or expense account.

Accounting Experience

The practical knowledge and expertise gained through working in accounting and finance roles.