The Vertical ("Y") Axis Shows

question 81

Multiple Choice

The vertical ("y") axis shows

• A) Dollars
• B) Units
• C) Contribution margin
• D) Total profit

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and constitute a part of the finished product.

Fixed Factory Overhead

Comprises all the indirect costs associated with operating a factory that do not vary with production levels, such as rent, depreciation, and utilities.

Static Budget

A fixed budget established at the beginning of a period, not adjusted for changes in activity or actual performance levels.

Continuous Budget

A rolling financial plan that continuously updates by adding a new period as the current period is completed.