Costs That Remain Constant in Total Dollar Amount as the Level

question 25

Multiple Choice

Costs that remain constant in total dollar amount as the level of activity changes are called

• A) fixed costs
• B) mixed costs
• C) product costs
• D) variable costs

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Definitions:

Seasonal Nature

Describes fluctuations in business activity, revenue, or profits at certain times of the year due to seasonal factors such as holidays or weather changes.

Fiscal Year Ends

The completion of a one-year, or 12-month, accounting period after which a company determines its financial performance.

Net Income

Total earnings of a business, arrived at by subtracting all expenses and taxes from its overall income.

Dividends

Payments made to shareholders out of a corporation's profits, reflecting the company's earnings and financial health.