In a Cost-Volume-Profit Graph, the Slope of the Total Cost

question 57

Multiple Choice

In a cost-volume-profit graph, the slope of the total cost line represents

• A)the selling price per unit.
• B)the contribution margin per unit.
• C)the variable cost per unit.
• D)total contribution margin.

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Definitions:

Defective Units

Items produced that do not meet the quality standards required for sale or use.

Customer Perspective

An approach or strategy in business that focuses on understanding and meeting the current and future needs of customers.

Strategy Map

A visual tool that illustrates a company’s strategic goals and the means to achieve them, highlighting cause-and-effect relationships.

Supply Chain Map

A graphical representation that details the steps involved in moving a product from supplier to customer, including all intermediary phases such as procurement, manufacturing, and distribution.