Which of the Following Statements About Variable Costing Is True

question 13

Multiple Choice

Which of the following statements about variable costing is true?

• A)As manufacturing output increases, the per-unit manufacturing cost remains constant.
• B)As manufacturing output increases, the per-unit manufacturing cost decreases.
• C)As manufacturing output increases, the per-unit manufacturing cost increases.
• D)As manufacturing output increases, the change in the per-unit manufacturing cost is negated by the change in the per-unit selling cost.

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Definitions:

Certified Cheque

A cheque guaranteed by a bank, indicating that the funds are available and have been set aside for the payee.

Bill Drawn

A document requesting the payment of money, typically used in international trade, specifying the amount and terms of payment.

Drawee

is the party, often a bank, required to pay the monetary amount specified in a check or draft.

Endorsers

Individuals who sign their names on documents, such as checks or contracts, to indicate support, approval, or transfer of ownership.