In Incremental Analysis Total Variable Costs Will Always Change Under

question 119

True/False

In incremental analysis total variable costs will always change under alternative courses of action and total fixed costs will always remain constant.

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Definitions:

Capital Structure

The mixture of debt and equity that a company uses to finance its operations and growth.

ROE

Return on Equity; a financial ratio that measures the profitability of a firm by dividing net income by shareholder's equity.

Days Sales Outstanding

A measure that calculates the average time it takes for a company to collect payments after a sale has been made.

Accounts Receivable

Funds that customers owe to a business for products or services rendered but for which payment has not yet been received.