If the Activity Level Increases 10% Total Variable Costs Will

question 89

Multiple Choice

If the activity level increases 10% total variable costs will

• A) remain the same.
• B) increase by more than 10%.
• C) decrease by less than 10%.
• D) increase 10%.

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Definitions:

Franchise

A business model that allows individuals or entities to operate a business using the branding and operational model of an established company.

Sole Proprietorship

A type of business entity owned and operated by one individual, with no legal distinction between the owner and the business.

Organizational Flexibility

The ability of a company or organization to adapt quickly to changes in its environment, including market trends, technologies, and internal dynamics.

Limited Liability

A legal structure where an individual's financial risk is limited to a fixed amount, typically the value of their investment in a company.